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Risk management in Islamic finance : an analysis of derivatives instruments in commodity markets / by Muhammad al-Bashir Muhammad al-Amine.

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Format:
Book
Author/Creator:
Al-Amine, Muhammad al-Bashir Muhammad.
Series:
Brill's Arab and Islamic laws series ; v. 1.
Brill's Arab and Islamic laws series, 1871-2894 ; v. 1
Language:
English
Subjects (All):
Commodity exchanges--Law and legislation.
Commodity exchanges.
Commodity exchanges--Religious aspects--Islam.
Finance (Islamic law).
Option (Contract) (Islamic law).
Sales (Islamic law).
Risk management--Religious aspects--Islam.
Risk management.
Physical Description:
1 online resource (360 p.)
Place of Publication:
Leiden ; Boston : Brill, 2008.
Language Note:
English
Summary:
This study addresses derivatives instruments in Islamic finance. It highlights the benefits of these instruments, their legal aspects and the appropriate alternatives. The forward, futures and options contracts in commodity markets are discussed and the arguments in favour of and against these instruments examined. The forward contracts issue includes the possibility of trading gold in forward basis, the forward market for currencies and the possible alternative to manage related risks. With the examination of futures contracts, the main arguments against such a contract are addressed, for example the sale prior to taking possession and the sale of debt hedging and speculation. The study proposes khiyar al-shart and bay al-arbun as tools of risk management and alternatives to options. The sale of pure rights is at the center of the admissibility of options in Islamic law and is investigated comprehensively.
Contents:
The forward commodities market
Is it permissible to exchange gold with paper money on forward basis?
The forward market for currencies
Concept, scope of futures contracts and speculation
Sale prior to taking possession, sale of debt and futures contract
Futures market regulation
Concept and scope
Khiyar Al-Shart, risk management and options
'Arbun risk management and options
The sale of pure rights and the legality of options.
Notes:
Description based upon print version of record.
Includes bibliographical references (p. [319]-328) and index.
ISBN:
1-282-60288-8
9786612602887
90-474-4030-7
OCLC:
705387696
Publisher Number:
10.1163/ej.9789004152465.i-338 DOI

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