Warrants, like stock options, are valuable because they give the holder the right to do what?

1. Redeem the bond for a fixed number of shares of common stock.
2. Buy common stock from the issuer at a certain price on or up to a certain date.
3. Rank equally or higher than all other debt in the event of bankruptcy.
4. Take legal action against the borrower to demand immediate repayment if the borrower misses a payment on any other debt outstanding.