Tehran Stock Exchange is awaiting the completion of software that would process derivatives and introduce index options, its chief executive said Monday. The Securities and Exchange Organization gave the green light for the introduction of stock derivatives in Iran’s equity markets. The Sharia Committee of SEO approved Sharia-compliant versions of futures and index options on June 10. “Tehran Stock Exchange initiated studies to introduce instruments that resembled index derivatives last year,” said Ali Abbas Karimi, the development deputy of the company. An option is a contract that gives the buyer the right, but not the obligation, to buy or sell an underlying asset or instrument at a specified strike price on or before a specified date.The index option’s Sharia –based version is called “Portfolio Option” by the SEO, according to the organization’s news website Sena.
