Legal and Jurisprudential Status of Option Contracts

The Law Governing of the Securities Market in the Islamic Republic of Iran has recently recognized option contracts as a type of derivatives without providing any further details of such contracts. Article 4(4) of the Law has, however, assigned the duty of approving any new financial instruments to Bourse High Council. Although options contracts are regarded many of financial markets in developed countries as an effective instruments, Iranian Islamic Jurists and lawyers haven’t still render any ideas about the nature of the in considering that Sunni Juries consults opposition to this contract, and the necessity of varying the financial instruments for thriving in bourse markets and mobility of our country, in this paper we review and discuss the principle of the validly of such contracts.