Question 3 (a) You came across a blog which remarked: The Shari'ah Advisory Council of Securities Commission of Malaysia has got it wrong. How is it possible that Crude Palm Oil (CPO) futures are Shari'ah compliant?! Such a transaction absolutely contains gharar and to the best of my knowledge, gharar is prohibited in Islam. So how is it that futures are deemed as Shari'ah compliant instruments?" Comment on this. (8 marks) (b) You came across the following posting on social media: I don't see what the fuss is about, why some Shari'ah scholars have objected against online Forex trading. There is nothing wrong with trading in currency futures. The futures contract is exactly like the Islamic contract of Salam. So if Salam is permissible, why not currency futures?" If you were to comment on this posting, what would you say? (8 marks) (c) Derivative exchanges can curb excessive speculative trading by increasing margin requirements. Very high margins would severely reduce leverage and thus discourage speculators. Despite this, exchanges would not indiscriminately (simply) increase margin requirements. Briefly explain why. (4 marks) Question 3 (a) You came across a blog which remarked: The Shari'ah Advisory Council of Securities Commission of Malaysia has got it wrong. How is it possible that Crude Palm Oil (CPO) futures are Shari'ah compliant?! Such a transaction absolutely contains gharar and to the best of my knowledge, gharar is prohibited in Islam. So how is it that futures are deemed as Shari'ah compliant instruments?" Comment on this. (8 marks) (b) You came across the following posting on social media: I don't see what the fuss is about, why some Shari'ah scholars have objected against online Forex trading. There is nothing wrong with trading in currency futures. The futures contract is exactly like the Islamic contract of Salam. So if Salam is permissible, why not currency futures?" If you were to comment on this posting, what would you say? (8 marks) (c) Derivative exchanges can curb excessive speculative trading by increasing margin requirements. Very high margins would severely reduce leverage and thus discourage speculators. Despite this, exchanges would not indiscriminately (simply) increase margin requirements. Briefly explain why. (4 marks)