Jones Works at an Investment Firm That Helps Corporations Merge

Jones works at an investment firm that helps corporations merge with other companies. Because of her work, she knows that two clients of her firm are going to merge. She also knows that when the announcement is made, the price of stock in these companies will jump. She buys stock in the companies before the announcement. She is:

A) probably guilty of insider trading
B) not guilty of insider trading under the Dirks case because she is outside of the companies
C) not guilty of insider trading under the Chiarella case because she owes no fiduciary duty to the companies
D) probably not guilty of insider trading because, under SEC Rule 10b-5, one must be a director or manager of the firms in question for the law to apply
E) none of the other choices