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University of Lahore School of Accountancy and Finance Financial Engineering (Product and Services of Islamic Financial Institution)
Lecture no.1
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as
and Simply, finance deals with matters related to money and the markets.
Financial engineering can be defined as the design, development, and the implementation of innovative financial instruments and processes, and the formulation of creative solutions to problems in finance.
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Computer Modeling
Need for Financial Engineering in Islamic Finance Financial are becoming more and more sophisticated, and competitive. In order to
markets
achievement the fast changing market environment and face increasing competition, financial
engineering imperative. and innovation is
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Derivative
Derivative instruments Contracts such as options and futures whose price is derived from the price of the original financial asset.
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Consciousness
That the parties should consciously and willingly agree on the conditions of contract without pressure. An implication of this is that any agreement made in the state of unconsciousness is not valid.
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Clarity
fully aware of all the implications of the conditions laid down in
That the parties are a contract. Any ambiguity will make the agreement
information.
uneven
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Capability
That the parties are reasonably certain that they are
capable of complying with all conditions of the contract. An implication of this is that sale of any
goods (or services) which are not
owned and
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Commitment
That the parties intend and are committed to respect the terms of a contract both in letter and spirit.
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Author Introduction
Abdur Rasid Mirza, Economic and Financial Analyst Associated Consulting Engineers ACE (Pvt.) Ltd. Faculty Member of University of Lahore, School of Lahore, School of Accountancy and Finance Research Scholar (Islamic Banking and Finance) Mobile no. 0300-4210261 Email Address: yourarm1972@hotmail.com Email address: yourarm@yahoo.com
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