Gharar in stock option transactions A Shia jurisprudence approach G. mesbahimoghadam

In transactions, Gharar has always been noticed by Shi’a jurisprudence (Figh) and Muslim scholars have always tried to avoid it. Ghararian transaction is one that its results are so vague that produce unusual probability for loss. As a whole, there are three fundamental cases of Gharar, including vagueness in sold existence,descriptions and ability to deliver it. In risk management, one of the most applied transactions all over the world is stock option transaction. Benefiting from financial instruments, the dubiety of Gharar in this transactions has always been challenging and under consideration. By an exact jurisprudential consideration it is found that this transaction is divided into two stages. The first stage is an exchange of engagement for price and the second one is selling right.There almost always have been disputes on selling rights among scholars. Assessing reasons given by those in agreement or disagreement, it is concluded that selling right is approved (in some shia jurisprudence approaches such as those by Imam Khomeini).Existence of credit risk, vagueness in option's descriptions and option contract qualification for delivering the right possession are problems which generate the dubiety of Gharar in these transactions.Considering clearing room role, existence of standard contracts and being common the credit delivering instruments in use among rationales, the dubiety of Gharar in these transactions is rejected in shia jurisprudence approach.