Within the framework of Islamic finance, Islamic options contract of promises. can be traded therefore premium should be charged for such options.

Question

Quizplus · Accepted Answer

Islamic finance prohibits the charging of interest and selling something that one does not own, which includes the speculative aspects and premiums associated with conventional options trading. Islamic options, or 'urbun, involve a non-refundable deposit for the right to buy or sell at a predetermined price, but this is not the same as the trading of options contracts with premiums in conventional finance.

Within the Framework of Islamic Finance, Islamic Options Contract of Promises