Being that these are exchange traded and therefore hold value outside of conversion, I'm not sure I agree with your rationale that conversion price makes it a prohibitive investment.
If these get in the money and therefore warrant conversion, the options can be sold on market to either help fund the conversion - or to take profits. If I was one of the people you listed out and felt this might go > 4c - I'd absolutely be buying in. If I couldn't afford the conversion, I'd sell the options for a profit - or sell enough to convert the rest.
PS - selling at .002 (one pip up) is a 100% gain, not 50%.
