Sarah serves as Chief Executive Officer (CEO) for Biostate Corporation. Biostate is a pharmaceutical company that conducts research on the development of new cancer drugs. It has developed several successful drugs over the past 15 years. ASA is a new drug developed by Biostate, which recently received tentative approval from the U.S. Food and Drug Administration (FDA). In advance of any public announcements about the FDA’s tentative approval of ASA, Sarah purchased a significant number of Biostate’s stock on the open market. Two weeks later, the FDA gave its final approval to begin manufacturing and selling ASA. After Biostate issued a public announcement regarding ASA’s approval by the FDA, Biostate’s stock jumped 12 percent in one day. As a result, Sarah made a profit of $335,000 on the stock purchase of two weeks ago. Do you believe Sarah engaged in prohibited insider trading? Explain.