HiTop Investments Main Office Is Located in the State of Colorado

HiTop Investments main office is located in the state of Colorado. A registered representative of the firm sent out an e-mail to his clients, some of whom reside in other states, promoting the firm's Colorado Municipal Bond Fund, which invests exclusively in bonds offered by the state and local governments of Colorado. In the e-mail, the representative states, "These bonds provide income that is free from both federal and state taxes and may also be free from local taxation, if any exists." Is this e-mail in violation of any securities' laws?

A) No. Since the fund invests exclusively in bonds offered by the state and local governments of Colorado, the representative's statement contains no misstatement of fact.
B) Yes. Advertisements referring to a specific fund may not be distributed by electronic means.
C) Yes. A fund that invests only in bonds offered by state and local governments of one state may not be sold to investors who reside in other states.
D) Yes. The representative's statement that the "bonds provide income that is free from both federal and state taxes and may also be free from local taxation, if any exists," is untrue.