Sam owns 80 percent of the stock of Club Corporation. Unrelated individuals own the remaining 20 percent. For a stock redemption of Sam's stock to be treated as an exchange under the "substantially disproportionate" test, what percentage of Club stock must Sam own after the redemption?

• Any percentage less than 64 percent.

• Any percentage less than 50 percent.

• Any percentage less than 80 percent.

• All stock redemptions involving individuals are treated as exchanges.