Company: MYI
Filing Date: 2025-08-08
Form Type: PRE 14A
Source: 0001193125-25-176952
Chunk: 227

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-08-08
Form: PRE 14A
Chunk 227
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 that class or series of options) would cease to exist, although outstanding options on that exchange that
had been listed by the OCC as a result of trades on that exchange would generally continue to be exercisable in accordance with their terms. OTC options are purchased from or sold to dealers, financial institutions or other counterparties which have
entered into direct agreements with MVF. With OTC options, such variables as expiration date, exercise price and premium will be agreed upon between MVF and the counterparty, without the intermediation of a third party such as the OCC. If the
counterparty fails to make or take delivery of the securities underlying an option it has written, or otherwise settle the transaction in accordance with the terms of that option as written, MVF would lose the premium paid for the option as well as
any anticipated benefit of the transaction. OTC options and assets used to cover OTC options written by MVF are considered by the staff of the SEC to be illiquid. The illiquidity of such options or assets may prevent a successful sale of such
options or assets, result in a delay of sale, or reduce the amount of proceeds that might otherwise be realized.

MVF may engage in options and futures
transactions on exchanges and options in the over-the-counter markets. MVF will only enter into OTC options with counterparties the Investment Advisor believes to be
creditworthy at the time they enter into such transactions.

The hours of trading for options on debt securities may not conform to the hours during which
the underlying securities are traded. To the extent that the option markets close before the markets for the underlying securities, significant price and rate movements can take place in the underlying markets that cannot be reflected in the option
markets.

Financial Futures Transactions and Options. MVF is authorized to purchase and sell certain exchange traded financial futures contracts
(“financial futures contracts”) in order to hedge its investments against declines in value, and to hedge against increases in the cost of securities it intends to purchase or to seek to enhance MVF’s return. However, any transactions
involving financial futures or options (including puts and calls associated therewith) will be in accordance with MVF’s investment policies and limitations. A financial futures contract obligates the seller of a contract to deliver and the
purchaser of a contract to take delivery of the type of financial instrument covered by the contract, or in the case of index-based futures contracts to make and accept a cash settlement, at a specific future time for a specified price