Explanation:

• Option A (Vasicek model): This is an equilibrium model that assumes mean reversion in interest rates, but it is not arbitrage-free by construction.

• Option B (Ho-Lee model): This is an arbitrage-free model that uses a binomial lattice approach. It was one of the first no-arbitrage models and is designed to fit the current term structure exactly.

• Option C (Cox-Ingersoll-Ross model): This is another equilibrium model that incorporates mean reversion and ensures non-negative interest rates, but it is not specifically a binomial lattice model and is not arbitrage-free.