Question: question 1 . (A) Explain why speculative currency transactions (e.g. in currency futures, currency forwards and currency options) are disallowed in Islamic finance. (B) Examine

question 1 .

(A) Explain why speculative currency transactions (e.g. in currency futures, currency forwards and currency options) are disallowed in Islamic finance.

(B) Examine the permissibility or otherwise of currency futures, currency forwards and currency options, as hedging instruments against foreign exchange risks, from the Shari'ah viewpoint.

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