KembaraXtra – Islamic Derivatives: Warrants vs Call Options (Simplified Explanation)
KembaraXtra – Islamic Derivatives: Warrants vs Call Options (Simplified Explanation) 🔹 What is a Warrant? 👉 A warrant is a financial instrument that gives the holder: - The right (not obligation) -...
KembaraXtra – Islamic Derivatives: Stand-Alone Options vs Embedded Options (Simplified Explanation)
KembaraXtra – Islamic Derivatives: Stand-Alone Options vs Embedded Options (Simplified Explanation) 🔹 1. What are Stand-Alone Options? 👉 Stand-alone options are options that are: - Bought and sold...
KembaraXtra – Islamic Derivatives: Differences Between Long/Short Positions, Options (Call & Put), and Short Selling
KembaraXtra – Islamic Derivatives: Differences Between Long/Short Positions, Options (Call & Put), and Short Selling 🔹 1. Long Position (Futures/Asset) - Means: Agree to buy - Expectation: Price goes...
KembaraXtra – Islamic Derivatives: Differences Between Hedging, Speculation and Leverage
KembaraXtra – Islamic Derivatives: Differences Between Hedging, Speculation and Leverage 🔹 1. Hedging 👉 Hedging means protecting against risk. - Goal: Reduce or avoid losses - Used by: Businesses,...
KembaraXtra – Islamic Derivatives: Combined Options (Put + Call) for Hedging Risk (Simplified Explanation)
KembaraXtra – Islamic Derivatives: Combined Options (Put + Call) for Hedging Risk (Simplified Explanation) 🔹 What is a Combined Option? A combined option means using: - Call option + Put option together...
KembaraXtra – Islamic Derivatives: Is There a Guarantee for Buyer and Seller in Call & Put Options?
KembaraXtra – Islamic Derivatives: Is There a Guarantee for Buyer and Seller in Call & Put Options? 🔹 Short Answer 👉 Yes, but the guarantee is not equal for both sides - Buyer → limited risk (guaranteed...
KembaraXtra – Islamic Derivatives: Option Contracts (Call & Put) – Simplified Explanation with Examples
KembaraXtra – Islamic Derivatives: Option Contracts (Call & Put) – Simplified Explanation with Examples 🔹 What is an Option Contract? An option contract gives the buyer the right (but not obligation)...
KembaraXtra – Islamic Derivatives: Where Does the Money Come From in Option Cash Settlement?
KembaraXtra – Islamic Derivatives: Where Does the Money Come From in Option Cash Settlement? 🔹 Short Answer 👉 In options, the money comes mainly from the option seller (writer) 👉 And it is secured using...
KembaraXtra – Islamic Derivatives: Call & Put Options Under Cash Settlement (Correct Idea + Case Analysis)
KembaraXtra – Islamic Derivatives: Call & Put Options Under Cash Settlement (Correct Idea + Case Analysis) 🔹 First — Fix Your Idea (Very Important) Your idea is almost correct, but needs a small correction:...
KembaraXtra – Islamic Derivatives: Does Cash Settlement Exist in Options? (Detailed Analysis)
KembaraXtra – Islamic Derivatives: Does Cash Settlement Exist in Options? (Detailed Analysis) 🔹 Short Answer 👉 Yes, cash settlement also exists in option contracts. - Just like futures, options can...