Is the underlined participial phrase correctly placed or misplaced?

The audience listened to the musician playing an electric guitar.

Underlined words: playing an electric guitar.

A.

misplaced participial phrase

B.

correctly placed participial phrase

This is a B) correctly placed participial phrase.

If it weren't, that would mean the sentence would go like this: The audience playing an electric guitar listened to the musician, and then playing an electric guitar would refer to the audience, and not the musician.