Marie's Supervisor Embarrasses Her by Constantly Telling Sexual Jokes and by Making

Marie's supervisor embarrasses her by constantly telling sexual jokes and by making sexual comments. Marie was shocked when she observed that he had sexually explicit material on his computer screen during working hours. Although the supervisor has never directly asked Marie to sleep with him, she feels threatened and is so uncomfortable that it is difficult for her to do her job.
-Now that the CEO of Marie's company is aware of the supervisor's propensity for inappropriate behaviors, which of the following is most likely to be true in the case of a sexual harassment lawsuit against the supervisor?

A) Both the supervisor and the company can be held liable.
B) The supervisor can be held liable, but not the company.
C) The supervisor can escape liability by claiming he was also being harassed.
D) The company can be held liable, but not the supervisor.
E) The supervisor can escape liability by claiming he was unaware of the harassment.