Company: MYI
Filing Date: 2025-08-08
Form Type: PRE 14A
Source: 0001193125-25-176952
Chunk: 226

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-08-08
Form: PRE 14A
Chunk 226
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F’s holdings in a security or a number of securities against a substantial decline in the market value. A call
option gives the purchaser of the option the right to buy and the seller the obligation

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to sell the underlying security or index at the exercise price during the option period or for a specified period prior to a fixed date. The purchase of a call option on a security could protect
MVF against an increase in the price of a security that it intended to purchase in the future.

Writing Covered Call Options. MVF is authorized to
write (i.e., sell) covered call options with respect to municipal securities it owns, thereby giving the holder of the option the right to buy the underlying security covered by the option from MVF at the stated exercise price until the option
expires. MVF writes only covered call options, which means that so long as MVF is obligated as the writer of a call option, it will own the underlying securities subject to the option.

MVF receives a premium from writing a call option, which increases MVF’s return on the underlying security in the event the option expires unexercised or
is closed out at a profit. By writing a call, MVF limits its opportunity to profit from an increase in the market value of the underlying security above the exercise price of the option for as long as MVF’s obligation as a writer continues.
Covered call options serve as a partial hedge against a decline in the price of the underlying security. MVF may engage in closing transactions in order to terminate outstanding options that it has written.

Additional Information About Options. MVF’s ability to close out its position as a purchaser or seller of an exchange-listed put or call option is
dependent upon the existence of a liquid secondary market on option exchanges. Among the possible reasons for the absence of a liquid secondary market on an exchange are: (i) insufficient trading interest in certain options;
(ii) restrictions on transactions imposed by an exchange; (iii) trading halts, suspensions or other restrictions imposed with respect to particular classes or series of options or underlying securities; (iv) interruption of the normal
operations on an exchange; (v) inadequacy of the facilities of an exchange or the Office of the Comptroller of the Currency (the “”) to handle current trading volume; or (vi) a decision by one or more exchanges to
discontinue the trading of options (or a particular class or series of options), in which event the secondary market on that exchange (or in