Participating Contingent Premium Options

2017 ◽  
Vol 20 (01) ◽  
pp. 1750003
Author(s):  
Aboulaich Rajae ◽  
Dchieche Amina
Keyword(s):  
Risk Sharing ◽  
Conventional Expression ◽  
The Creation

The first motivation of the creation of derivatives is hedging risk but unfortunately this motivation has changed over the decades since more conventional contracts are used for speculation. The purpose of this study is to use derivatives solely for hedging while respecting principles of profit and risk sharing. According to previous work about the pricing of Waad Bil Mourabaha and using the conventional expression of the contingent premium option, we will propose a model of Participating CPO.

DISRUPTIVE AND PARADOXICAL ROLES IN THE SHARING ECONOMIES

2020 ◽  
pp. 2150045
Author(s):  
CHRISTINA ÖBERG
Keyword(s):  
Business Model ◽  
Risk Sharing ◽  
Sharing Economy ◽  
Peer To Peer ◽  
Informed Decisions ◽  
The Creation

The sharing economy could be said to disrupt who does what in exchanges. This paper categorises the roles played by users, providers, and platforms in different interpretations of the sharing economy. It asks: What different roles do the users, providers, and platforms play in the sharing economy? And: How do the roles differ in various interpretations of the sharing economy? The paper classifies the different interpretations based on their market/non-market logic and concludes that roles are more extensive for users and providers in non-market logic interpretations, while market logic suggests that the platform acts more roles. The user is, despite the peer-to-peer connotation of the sharing economy, often quite passive. Contributions are made to the emerging literature on the sharing economy through highlighting its many different interpretations, where roles help to systematise these. The paper furthermore contributes to the literature on roles through highlighting them as transitory and expanding beyond expectations related to digitalisation. Practically, the systematisation of roles helps to navigate among various business model designs and makes informed decisions when launching platforms in the sharing economy. Additionally, the focus on roles raises important questions on risk sharing, resource provisions, and the creation of value for each participating party.

scholarly journals Derivative products and innovation in Islamic finance

2014 ◽  
Vol 7 (3) ◽  
pp. 242-257 ◽  
Author(s):  
Seng Kiong Kok ◽  
Gianluigi Giorgioni ◽  
Jason Laws
Keyword(s):  
Risk Management ◽  
Risk Sharing ◽  
Supervisory Board ◽  
Management Tool ◽  
Islamic Finance ◽  
Management Tools ◽  
Content Type ◽  
Risk Transfer ◽  
Financial Framework ◽  
The Creation

Purpose – The purpose of this paper is to highlight the possibility of structuring an Islamic option which includes an element of risk sharing as opposed to risk transfer. Design/methodology/approach – The approach adopted in this research involved a combination of a wa’ad (promise) and murabaha (cost plus sale) and examining if they could form a risk-sharing Islamic option. The payoffs were assumed to be dependent on bi-period outcomes. Findings – The paper attempted to create a hybrid risk-sharing option by combining elements of both wa’ad (promise) and murabaha (cost plus sale). The results yielded are dependent on the eventual direction of the market (in-the-money, at-the-money and out-the-money). While the results are not definitive, they do provide arguments for the adoption of a risk-sharing, as opposed to a risk-transfer, methodology when it comes to structuring risk management instruments. Research limitations/implications – One of the major limitations of this research is the inability to assess the Shariah compliance of the proposed instrument. Shariah compliance is determined by a Shariah Supervisory Board, and every effort has been made to ensure that Shariah financial principles are adhered to in the creation of this structure. Practical implications – The structure provides some interest arguments in the creation of risk management tools under a Shariah financial framework. The structure illustrates the benefits of having a risk-sharing mode over the conventional risk-transfer stances of most risk management tools. Originality/value – The paper offers a new way of structuring a risk management tool in Islamic finance. It explores the highly debated area of derivatives in Islamic finance and proposes a new way of creating a risk management tool that involves some elements of risk sharing.

The Economics and Law of Sovereign Debt and Risk Sharing: Some Lessons from the Eurozone Crisis

2016 ◽  
Vol 12 (3) ◽  
Author(s):  
Kaushik Basu
Keyword(s):  
Sovereign Debt ◽  
Risk Sharing ◽  
Debt Crisis ◽  
Sovereign Debt Crisis ◽  
The European Union ◽  
Eurozone Crisis ◽  
Joint Liability ◽  
Legal Provisions ◽  
Simple Theoretical Model ◽  
The Creation

AbstractAnalyzing the source of the Eurozone sovereign debt crisis, the paper argues the need for greater risk sharing and joint liability across sovereigns. This will require amending some of the legal provisions that underlie the European Union and the creation of the Euro. Once this is done it will be possible to consider the creation of Eurobonds and other liability arrangements, which can promote investment and job creation. A simple theoretical model is presented to bolster the argument.

scholarly journals Risk-Sharing and the Creation of Systemic Risk

2020 ◽  
Author(s):  
Viral V. Acharya ◽  
Aaditya Iyer ◽  
Rangarajan K. Sundaram
Keyword(s):  
Systemic Risk ◽  
Risk Sharing ◽  
The Creation

The role of affect in feelings of obligation

2020 ◽  
Vol 43 ◽  
Author(s):  
Stefen Beeler-Duden ◽  
Meltem Yucel ◽  
Amrisha Vaish
Keyword(s):  
Positive Emotions ◽  
The Creation ◽  
Sense Of Obligation

Abstract Tomasello offers a compelling account of the emergence of humans’ sense of obligation. We suggest that more needs to be said about the role of affect in the creation of obligations. We also argue that positive emotions such as gratitude evolved to encourage individuals to fulfill cooperative obligations without the negative quality that Tomasello proposes is inherent in obligations.

Haydn: The Creation

1991 ◽  
Author(s):  
Nicholas Temperley
Keyword(s):  
The Creation
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