Question: A corporation is considering hedging currency risk using derivatives. However, its Shariah advisor warns that some derivatives might not be permissible in Islamic finance. Which

A corporation is considering hedging currency risk using derivatives. However, its Shariah advisor warns that some derivatives might not be permissible in Islamic finance.

Which of the following best explains why certain derivatives might violate Islamic finance principles?

They involve interest payments

They create excessive uncertainty and speculation

They are only available in non

-

Islamic countries

They are not used by Islamic banks

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