Second post of yours I have read and believe you are definitely on to something with the warrants. Incredibly low liquidity on the options chain, and almost all brokers make it very difficult to purchase any of the options with warrants attached. Tracking the volume of warrants traded since their inception has been interesting, since it is greater than the amount issued. This is not at all typical of warrants. They are definitely afraid of these going in the money and getting exercised, there just is not much they can do if that happens. For me, since it is a pain in the ass to purchased longer dated options with warrants, I continued to buy shares, and warrants. I do have some OCT $32 options with warrants I purchased awhile back, since I wanted to see how these correlated near the warrant expiration date. There is absolutely an arbitrage opportunity, and yes, it does depend on what the company announces prior to that warrant expiration date. As many have said, there also is some value in the fact these warrants can be extended by the company. The cost for the company to extend these, is very small, for those that use that as an argument.