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Pricing of Al-Urbun and a Class of Al-Istijrar Islamic Contracts under the Black–Scholes Framework

journal contribution
posted on 2024-11-17, 15:18 authored by Joanna Goard, Mohammed AbaOud
Islamic financial contracts necessarily need to abide by Shariah principles. As such, some contracts have been introduced for risk-hedging real transactions that differ from those seen in conventional financial markets. In this paper, we examine two such products, Al-Urbun and Al-Istijrar, and determine fair prices for both the Al-Urbun and a class of Al-Istijrar under the Black–Scholes framework.

Funding

Deanship of Scientific Research, Imam Mohammed Ibn Saud Islamic University (IMSIU-RG23118)

History

Journal title

Mathematics

Volume

12

Issue

2

Language

English

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