Affiliations 

  • 1 Universiti Teknologi MARA
MyJurnal

Abstract

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.