Islamic derivative from a conventional derivative

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Question 1: Is the horizon for Islamic private equity more delimiting? Do you agree that there are more restrictions on what is investible and what is not?

Question 2: What distinguishes an Islamic derivative from a conventional derivative?

Question 3: A poor farmer intends to cultivate three acres of paddy but lacks the necessary credit facilities for such farming. The farmer needs money to prepare and till the land and needs money to feed the family for the next five months before the harvest. He approaches you for expert advice on how to get the necessary credit facilities. Advice the farmer on the best mode of Islamic microfinance for their needs and explain the procedure and conditions for the validity of the contract.

Reference no: EM132596609

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