Pricing of Al-Urbun and a Class of Al-Istijrar Islamic Contracts under the Black–Scholes Framework
Publication Name
Mathematics
Abstract
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.
Open Access Status
This publication is not available as open access
Volume
12
Issue
2
Article Number
252
Funding Number
IMSIU-RG23118
Funding Sponsor
Deanship of Scientific Research, Imam Mohammed Ibn Saud Islamic University