“Option Contracts” in the Light of Islamic Jurisprudence: Comparative Study

This research aims to provide an Islamic Fiqhi perspective on the Options Contract, one of the most prominent contracts in international capital markets. The research begins with a historical introduction that illustrates the emergence of this contract and its evolution. It then moves on to explain its terminology and linguistic meanings. The research also addresses the most suitable Fiqhi adaptation (Takyeef) to this contract. The research concludes with many significant findings. Firstly, the subject of contracting is an abstract right, namely, just the right to purchase or to sell, and not something else. It is not an obligation, because an obligation is only a consequence of this contract. Finally, all kinds of this contract are haram because it contains gharar and maysir (gambling).