You are presented with hypothetical scenarios where questions and/or comments related to Islamic capital markets are given. Based on what you have learned in this Islamic capital market course, as well as other sources of reference you may want to obtain, provide a specific, relevant, reasoned and well-articulated response for each scenario. Each question will be worth 5 marks. You need not provide a very lengthy response. Quantity will not assure a high mark. Instead, grading will be based on accuracy and relevance. 7. Your neighbour is seeking some financial advice from you. He explains: "I am bidding for a government tender (contract). The result of the tender process will only be known in 3 months' time, that is, I will only know whether I got the contract in three months. If I get this contract, I will need to purchase some specialized machinery from Japan. If and when that time comes, I am concerned about the Malaysian Ringgit-Japanese Yen exchange rate. If in 3 months, I get the contract and the Yen has appreciated significantly against the Ringgit, it will eat into my profits. I have heard that we can use currency derivatives to manage such a risk. I read somewhere that there are forwards, futures, options and swaps. But I am confused, which derivative contract should I use, and why? Can you help?" 8. Mr. Ahmad has approached you to seek your opinion: I have read that Sukuk can be categorized as being either asset-based or asset-backed. Some are of the opinion that the latter (asset-backed) is more in line with the spirit of the Islamic Shari'ah. That being the case, I find it surprising that in the market today, there are more asset-based Sukuk compared to asset-backed ones. Why is this? If asset-backed is in essence "more Islamic, why is there less of it? Can you please help me to understand what's going on?" You are presented with hypothetical scenarios where questions and/or comments related to Islamic capital markets are given. Based on what you have learned in this Islamic capital market course, as well as other sources of reference you may want to obtain, provide a specific, relevant, reasoned and well-articulated response for each scenario. Each question will be worth 5 marks. You need not provide a very lengthy response. Quantity will not assure a high mark. Instead, grading will be based on accuracy and relevance. 7. Your neighbour is seeking some financial advice from you. He explains: "I am bidding for a government tender (contract). The result of the tender process will only be known in 3 months' time, that is, I will only know whether I got the contract in three months. If I get this contract, I will need to purchase some specialized machinery from Japan. If and when that time comes, I am concerned about the Malaysian Ringgit-Japanese Yen exchange rate. If in 3 months, I get the contract and the Yen has appreciated significantly against the Ringgit, it will eat into my profits. I have heard that we can use currency derivatives to manage such a risk. I read somewhere that there are forwards, futures, options and swaps. But I am confused, which derivative contract should I use, and why? Can you help?" 8. Mr. Ahmad has approached you to seek your opinion: I have read that Sukuk can be categorized as being either asset-based or asset-backed. Some are of the opinion that the latter (asset-backed) is more in line with the spirit of the Islamic Shari'ah. That being the case, I find it surprising that in the market today, there are more asset-based Sukuk compared to asset-backed ones. Why is this? If asset-backed is in essence "more Islamic, why is there less of it? Can you please help me to understand what's going on