In January 2021, the term structure of spot rates is as follows (with continuous compounding):

Maturity (years)	Spot rate (% per annum)
1	2.5
2	3.5
3	4.0

A bank offers special bond A where investors borrow (lend) $100 in year 1 and repay (receive) in year 3 a fixed amount of money. If there is no arbitrage, what should be the fixed amount investors repay or receive in year 3?

Group of answer choices

$101.51

$104.86

$105.65

$109.97