What’s the Islamic ruling on options to buy/sell something in the future?
May 8, 2013
Q: Are two parties allowed to simply agree to an ‘option’ for both parties in the future? For example, A agrees to an option with B that A may/may not buy something in the future. Likewise, B also agrees to an option to sell/not sell in future. Is this allowed?
الجواب حامدا ومصليا ومنه الصدق والصواب
A: Such options are not allowed due to gharar, or contractual ambiguity, entailed within this – which is impermissible.