In one country there are no applicable local laws or stock exchange rules that regulate the use of material nonpublic information. It is ______ for a CFA Institute member to use insider information to trade securities in this market.

A. legal and ethical
B. illegal and unethical
C. legal but unethical
D. ethical but illegal

Correct Answer: C

The member should base his/her actions on CFA Institute ethical principles, which represent a higher standard of behavior than the behavior required by law in this case.