b. Sally Ltd and Morgan Ltd own 80% and 20% respectively of the ordinary shares that carry voting rights at a general meeting of shareholders of Kelly Ltd. Sally Ltd sells half of its interest to Zaman Ltd and buys call options from Zaman Ltd that are exercisable at any time at a premium to the market price when issued and, if exercised, would give Sally Ltd its original 80% ownership interest and voting rights. At 30 June 2018, the options are out of the money.

Required: Discuss whether Sally Ltd is the parent of Kelly Ltd.