During a lunch with his friend, who is an analyst in the software industry, John Smith, a trader with Zeta Capital finds out there are rumours of a merger between two software companies. Smith has always valued his friend's suggestion, and the next day places a large buy order to be distributed equally to all discretionary accounts for which the target firm is suitable. He also informs all his non-discretionary accounts of the recommendation. By acting on his friend's advice did Smith violate any CFA Code of Ethics and Professional Conduct Standards? Select one: a. Yes, with respect to fair dealing. b. No c. Yes, with respect to priority of transactions. d. Yes, with respect to diligence and reasonable basis.

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