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2. Two Level I CFA candidates are discussing futures and make the following statements: Candidate 1: Futures are traded using standardized contracts. They require margin

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2. Two Level I CFA candidates are discussing futures and make the following statements: Candidate 1: Futures are traded using standardized contracts. They require margin and incur interest charges on the margin loan. Candidate 2: If the margin balance falls below the maintenance margin amount due to a change in the contract price for the underlying assets, the investor must add funds to bring the margin back up to the initial margin requirement. Are the candidates' statements correct or incorrect? a. Both statements are correct. b. Neither statement is correct. C. Only one of the statements is correct

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