Followup right issue

Kelvin co is considering an extensive right issue to raise new finance. It currently has 4M shares and has been successful over a prlonged period.The terms of deal are as follows a) 1 new share for every 4 held at a price of 90% of the existing market valye per share b) The exisiting market value is $20 per share (the cum right price) 1 of the directors is unhappy with offering any discounts to existing shareholders. He claims that the companies past success should be enough to encourage shareholders to increase their investment. Which of the following actions will result in least dilution of control for existing shareholders? 1) Accept rights offer without negotiation 2) Renounce their rights and sell them on open maeket 3) Save their investment and do nothing 4) Sell 50% of their rights in open market Sir correct answer is 1). However, in option 1,2 and 3 shareholders wealth will remain unchanged then why option 2 and 3 cannot be the correct answer?