Bob Gogetter Is an Agent with CanDo Broker-Dealers

Bob Gogetter is an agent with CanDo Broker-Dealers. One of Bob's clients is out of the country and cannot be contacted. The client holds some stock in a company that just released some information that should make its stock price soar. Bob knows that this client would probably want to increase his holdings, so Bob opens a margin account for his client and borrows the money to buy shares. As it happened, the stock price did soar, and Bob's
Client earned a sizeable profit. Is Bob in violation of any securities acts?

A) No. Bob has a fiduciary responsibility to his client to act in his best interest, and Bob knew this
B) No, but only because Bob's client profited from Bob's intervention. If the stock had declined in
C) Yes. It is against the law for an agent to open a margin account for a client without the client's
D) Yes. Bob is guilty of prohibited practice of churning.