Ok here's an example: Lets look at GLW (Corning Glass)

http://ca.finance.yahoo.com/q/op?s=GLW&m=2015-01

Look at the 2015 expiry at a strike of $3.00. Currently the share price of corning is 12.64, therefore the stock is trading above the $3 strike price by a factor of 4, very similar to what the warrants for MNKD would be trading at. You can see several things:

A) The break even point of that option is 12.71 compared to a current share price of 12.64, this means a very small intrinsic premium on time value of 0.5% has been assigned to this option. For the most part the price of the option will track the stock very closely.

B) The volume and open interest on that option is very limited because it is deep in the money, most people would feel very safe executing at that price and holding the stock for increased liquidity. Why hold that option with a volume that is drastically lower than a common share when I could shell out $3 more per share and sell/hold based upon market fluctuations as I please---- fact is the ladder is much safer .