Hisham, A. F. B., Jaffar, M. M. and Othman, J.
Pertanika Journal of Tropical Agricultural Science, Volume 25, Issue 3, July 2017
Keywords: Salam contract, partial differential equation, credit risk model, Islamic derivative
Published on: 20 Jun 2017
There are many research papers on implementing the salam structure in the financial system. This study introduces a mathematical model of salam contract with credit risk that can be used as an Islamic financial derivative. It explores the properties of salam contract and the credit model that represents it, that is, the structural model with the default event on maturity of the salam contract.
ISSN 1511-3701
e-ISSN 2231-8542