Zelda Is a Certified Public Accountant for Kite Company,a Company

Zelda is a certified public accountant for Kite Company,a company that makes designer kites.An audit discloses the Kite Company's profits have doubled since the previous year,and Zelda rightfully discloses that fact to Rhonda,Kite Company's chief financial officer.The information regarding the profits is material and nonpublic until the corporation announces its earnings in ten days.Both Zelda and Rhonda buy stock in Kite Company.After the earnings information is made public,the price of the stock increases.Are Zelda and Rhonda liable for any violations of federal securities laws?

A) They are both liable for violations of Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934.
B) Zelda is liable for violations of Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934, but Rhonda has committed no violations.
C) Rhonda is liable for violations of Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934, but Zelda has committed no violations.
D) Neither Rhonda nor Zelda is liable for any violation, unless it can be shown that the company's reputation was harmed by their actions.
E) Neither Rhonda nor Zelda is liable for any violation, unless it can be shown that the other stockholders were harmed by their actions.