The Term "No-Arbitrage" Class of Term-Structure Models Refers to

Multiple Choice

The term "no-arbitrage" class of term-structure models refers to

A) Models which focus on bond prices directly rather than interest rates.
B) Models which work under the martingale measure directly rather than under the actual or "statistical" measure.
C) Models whose parameters never have to be re-estimated since no-arbitrage ensures that they cannot change from day to day.
D) Models which are capable of matching the observed term-structure perfectly.