What is the rationale of the need for full payment

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a) What is the rationale of the need for full payment upfront by the long position in Bai' Salam contract?

b) How would be the cost of carry equation for the Bai' Salam given full payment upfront?

c) How much is the inbuilt leverage in Bai' Salam?

d) The need to avoid gharar is a key requirement in Islamic finance. Define gharar. Briefly evaluate modern day futures contract from the viewpoint of gharar.

Reference no: EM132774808

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