Bai-Urbun Contract: In Arabic, the word urbun means a down-payment or a deposit for a future transaction. Bai-urbun can be used as a Sharia-complaint alternative to options. It is a deposit given by the buyer to the seller in a buying and selling contract. If the sale proceeds, the deposit will be part of the price of the goods. Otherwise, it will be considered as hibah (gift) from the buyer to the seller.
A similarity exists between a call option and Bai-Urbun in the sense that buyer loses the advance payment if he does not execute the transaction. In the case of a call option, the option premium is lost, even if the option is exercised and the contract is confirmed. It is worth mentioning that not all Islamic scholars find Bai-Urbun acceptable