In Some Countries,financial Institutions Operate Under Shariah,which Also Gives Guidance

question 46

Multiple Choice

In some countries,financial institutions operate under Shariah,which also gives guidance about accounting practice in these institutions. What is "Shariah?"

• A)Shariah is the financial accounting standards board in Saudi Arabia.
• B)Shariah is the law governing human conduct that is derived from the Koran.
• C)Shariah is the codification of banking regulations in the European Union.
• D)Shariah is a political system used in South American countries.

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Definitions:

Expiration Date

The date on which an option, futures contract, or similar financial instrument becomes invalid and the right to exercise it ceases.

Exercised

Refers to the action taken by the holder of an option contract to utilize their right to buy or sell the underlying asset at the strike price.

Black-Scholes Model

A mathematical model used for pricing options, providing estimates of the variations over time of financial instruments.

European Put Options

A type of put option that can only be exercised at the expiration date, allowing the holder to sell the underlying asset at a specified strike price.