Company: PDCC
Filing Date: 2025-09-19
Form Type: 424B2
Source: 0001214659-25-013974
Chunk: 234

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-09-19
Form: 424B2
Chunk 234
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 the non-deliverable forward agreement and the actual exchange
rate on the agreed-upon future date. Thus, the actual gain or loss of a given non-deliverable forward transaction is calculated by multiplying
the transaction’s notional amount by the difference between the agreed-upon forward exchange rate and the actual exchange rate when
the transaction is completed. Although forward foreign currency transactions are exempt from the definition of “swap” under
the Commodity Exchange Act, non-deliverable forward transactions are not, and, thus, are subject to the CFTC's regulatory framework applicable
to swaps.

The ability to establish
and close out positions on currency futures contracts is subject to the maintenance of a liquid market, which may not always be available.
An option on a currency provides the purchaser, or “holder,” with the right, but not the obligation, to purchase, in the case
of a “call” option, or sell, in the case of a “put” option, a stated quantity of the underlying currency at a
fixed exchange rate up to a stated expiration date (or, in the case of certain options, on such date). The holder generally pays a nonrefundable
fee for the option, referred to as the “premium,” but cannot lose more than this amount, plus related transaction costs. Thus,
where the Company is a holder of options contracts, such losses will be limited in absolute amount. In contrast to a forward contract,
an option imposes a binding obligation only on the seller, or “writer.” If the holder exercises the option, the writer is
obligated to complete the transaction in the underlying currency. An option generally becomes worthless to the holder when it expires.
In addition, in the context of an exchange-traded option, the writer is often required to deposit initial margin and may be required to
increase the margin on deposit if the market moves against the writer’s position. Options on currencies may be purchased in the
OTC market between commercial entities dealing directly with each other as principals. In purchasing an OTC currency option, the holder
is subject to the risk of default by the writer and, for this reason, purchasers of options on currencies may require writers to post
collateral or other forms of performance assurance.

Buyers and sellers of currency
futures contracts are subject to the same risks that apply to the use of futures contracts generally, which are described elsewhere in
this SAI. Further, settlement of a currency futures contract for the purchase of most currencies must occur at a