Ya, and the exact opposite scenario could happen where prior to conversion YLO has a huge run to 30 cents or more based on news or some kind of oversold massive bounce. Then the Preferreds that you bought at whatever price immediately have an equivalent value of $3.75 for the A's and the B's $3.90. People who get converted aren't all going to sell at 9:31 AM the morning of the conversion.
If you're bullish on YLO, buy the Pref A and B, with B being of better value than A at the moment.
If you're bearish on YLO, buy the Pref A or B then short the corresponding amount of common shares to pick up the arbitrage gain whether the scenario laid out by onereality happens or not because the ratio spread on the commons and preferreds will converge at one price or another eventually.