I love Coffee

How can we use derivatives instruments to make money on this upcoming raise of coffee prices?


http://www.bloomberg.com/apps/news?pid=20601109&sid=aMVwm88g8.es&pos=13

ISLAM and DERIVATIVES

I really don't see why derivatives should be banned under the ijara.
The main goal of any investor is to make money in whatever religious ruling power you trade in. If there is trade they should be risk and money to be make. In case you lose money due to the fact that you have a too big exposure then it is your own fault: you haven't read my blog. More so, the derivatives products are all back by underlying assets so a banned of derivatives trading should also be as a banned on stock trading or any single volatile asset.
I do not agree with the new regulations proposed by the Bahrain-based Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) and I think they should be an OCC instead of an interdiction to trade derivatives, then we can talk about best practices.







http://www.reuters.com/article/idUSLDE60J0WF20100120

Soft commodities

There is no doubt that the price of sugar is going up, with India likely to import an additional 1 million metric tons of sugar. That's without doubt a price mover.
How can derivatives be used to hedge against the price increase?
SELL A PUT OPTION and BUY a CALL OPTION.

Some articles on the subject:
http://online.wsj.com/article/SB126320161403624393.html

http://in.reuters.com/article/domesticNews/idINDEL39639220090217