A Necessary and Sufficient Condition to Rule Out Arbitrage Profits $\gt$

Multiple Choice

A necessary and sufficient condition to rule out arbitrage profits in the multiperiod binomial tree is that the following must hold:

A) "up factor $\gt$ down factor $\gt$ dollar return"
B) "up factor $\gt$ dollar return $\gt$ down factor"
C) the pseudo-probability for an up movement must equal that for the down movement
D) the pseudo-probabilities for an up movement at any node of the tree must be the same for all bond/money market account pairs
E) None of these answers are correct.