Al-ikhtiyar

Definition of "Al-ikhtiyar"

A variant of al-khiyar (the right to rescind the contract) applied to denote options in the contemporary financial and stocks markets. It is of two types: (i) ikhtiyar al-talab (call option); and (ii) ikhtiyar al-daf‘ (put option). The period to exercise the option is called fatrah al-ikhtiyar.