7. An oil company wishes to finance an extra drilling well on a site that is already producing oil. It suggests to an Islamic bank that the bank pays the company cash now in return for a specified quantity of oil in one year's time, at which time the well is expected to be up and running. In principle, is this transaction valid under Islamic law?

1. no, there is gharar since oil may not be produced
2. no, since the company is in effect short selling oil
3. no, since oil and money must be exchanged on the spot
4. yes, if a third party guarantees the delivery of oil
5. 100%yes, this is a bay` al-salam contract