Answer Happy

You are presented with hypothetical scenarios where questions and/or comments related to Islamic capital markets are given. Based on what you have learned in this Islamic capital market course, as well as other sources of reference you may want to obtain, provide a specific, relevant, reasoned and well-articulated response for each scenario. Each question will be worth 5 marks. You need not provide a very lengthy response. Quantity will not assure a high mark. Instead, grading will be based on accuracy and relevance. 5. You came across a blog which remarked: "The Shari'ah Advisory Council of Securities Commission of Malaysia has got it wrong. How is it possible that Crude Palm Oil (CPO) futures are Shari'ah compliant?! There is totally gharar in such a transaction. To the best of my knowledge, gharar is prohibited in Islam. So how is it that futures are deemed as Shari'ah compliant instruments?" Comment on this. 6. In a conversation with a friend of yours, you discussed the Sub-prime Global Financial Crisis in 2008. During the course of that discussion, you mentioned that "if it were not for derivatives, we may not have had the crisis”. Your friend is not so clear about what you mean by this. Help her understand by briefly explaining the role of derivatives in the 2008 Global Financial Crisis