What exactly does the extended warrenty cover?

my silver nano, its...dying. the battery is dying and i just bought it in october. if its off for at least 10 minutes i can't turn it on unless i plug it in to the computer...but sometimes i'm not near one, and its getting frustrating.
would the extended warrenty grant me a new ipod nano, or just fix the one i have? could i get a different color?

apple's standard warranty says...
If a hardware defect arises and a valid claim is received by Apple within the Warranty Period, at its option and to the extent permitted by law, Apple will either (1) repair the product at no charge, using new or refurbished replacement parts, (2) exchange the product with a product that is new or which has been manufactured from new or serviceable used parts and is at least functionally equivalent to the original product, or (3) refund the purchase price of the product.
if apple accepts that there is a fault then it is almost guaranteed that you'll be sent either your own, repaired, ipod, or have it replaced with one of the same model/colour, that replacement might be new or it might be refurbished
you can't use the warranty process to change colour/model, but apple can if it wants

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