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Examen
Students Referencer on Strategic Financial Management
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---61junio 20222021/2022A+
- Question 1 
What do you mean by Derivatives? [M 03, RTP] 
What is a “Derivative”? Briefly explain the recommendations of the LC Gupta Committee on 
Derivatives. [M 03, M 11] 
Answer 
1. Meaning: Derivative is a financial instrument, which derives its value from some 
other asset which is referred to as the underlying asset. The underlying asset can be – (a) 
financial assets such as shares and securities, or (b) other assets such as commodities. 
2. Underlying Assets: Commodities, Foreign ...
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