Let S(0) = 1, K = 100, r = 0.03, T = 1 (year) and = 20%. Assume that the stock has a known "dividend yield" of 5%, which is paid out in 0.6 years. Calculate the price of the option under this assumption by pricing it using a binomial tree with monthly steps.

Use the book (Options, futures and other derivatives) chapter 21.3 under the heading Known Dividend Yield.