Susan is dating Mike, the CEO of a major drug company. One particular evening Mike seems very preoccupied. Concerned about

Susan is dating Mike, the CEO of a major drug company. One particular evening Mike seems very preoccupied. Concerned about his feelings, Susan asks what’s wrong and he tells her that a major drug that the company was counting on has not been approved by the FDA. He further tells her that the announcement will be made at 10:00 am the next morning. At 9:00 am the next morning, Susan calls her broker and orders the sale of all of her stock in Mike’s company. After the announcement, stock in Mike’s company tumbles. By selling, Susan has saved over $69,000. Which of the following statements s true in this situation?

a. Susan is a tree and will be liable for using insider information
b. Susan is not a true insider so she has no liability.
c. Susan may use the formation however she is liable only if she warns others.
d. Susan is liable only if the sale resulted in a short swig profit.
e. Susan acquired the information innocently so shehas no liability.

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