I am not trying to state options are necessarily better than purchasing share outright, I have never stated that. However your cash outlay is far greater for the warrants with an upside of $2.60 per share compared to the options. If we do that calculations by outlay:

Warrants:

$1.08 + .4(1.08) = 1.51 per share

Options outlay per share is $1.05 currently. This means you are paying about a 45% premium for the warrant, with an upside of about $2.50 which is a drop in the bucket when you consider the stock potentially hitting $50+. Not many people at that point would wory about the 2.50 per share they lost out on. However I know many people would be bothered that they lost 45% more if this company fails