Exercise 20.2 ★ OPTIONS Palau Ltd and India Ltd own 80% and 20% respectively of the ordinary shares that carry voting rights at a general meeting of shareholders of Cook Islands Ltd. Palau Ltd sells half of its interest in Cook Islands Ltd to Kobe Ltd and buys call options from Kobe Ltd that are exercisable at any time at a premium to the market price when issued and, if exercised, would give Palau Ltd its original 80% ownership interest and voting rights. At 30 June 2014, the options are out of the money. Required Discuss whether Palau Ltd is the parent of Cook Islands Ltd.