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 single-period HJM binomial tree is that the following must hold:

A) "up factor $\gt$ down factor $\gt$ dollar return" [U $\gt$ D $\gt$ (1 + R) ] for all zero-coupon bonds
B) U $\gt$ (1 + R) $\gt$ D for all zero-coupon bonds
C) the pseudo-probabilities must be equal for all zero-coupon bond/money market account pairs
D) the pseudo-probabilities must be equal to 1/2
E) None of these answers are correct.