Dear all,

Can anyone help me with the following question about Code and ethics pls

Over the past 2 yrs, a Frm, manager of hedge fund, has been purchasing large quantity of a common stock, and at the same time shorting put option of the same stock. She did not notify her clients of the trades although they are aware of the fund general strategy to generate returns. Asking which of following statements is mostly correct. she

a) did not violate Code
b) violate by manipulate price of publicly traded securities
c) violate by fail to disclose to clients before trades occur
d) violate by fail to establish reasonable, adequate basis before making trades

I think b and c are correct.
But the correct answer is a. reason is she attempts to take advantage of an arbitrage opportunity that exists between that common stock and its put option. that s an investment strategy so not violate b and since her clients aware of it, she doesnt violate c