An elderly customer seeking extra income who has $100,000 to invest could be recommended which of the following?
I The $100,000 purchase of a variable annuity
II The $100,000 purchase of dividend paying blue chip stocks in a cash account against which calls are sold
III The $200,000 purchase of dividend paying blue chip stocks at 50% margin in a margin account
IV The $100,000 purchase of Treasury bonds
A. I and III
B. I and IV
C. II and III
D. II and IV