Company: MYI
Filing Date: 2025-09-02
Form Type: N-14 8C/A
Source: 0001193125-25-193985
Chunk: 166

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-09-02
Form: N-14 8C/A
Chunk 166
---
 of MVT to engage in Strategic Transactions. In addition, the use of certain Strategic Transactions may give rise to taxable income and have certain other consequences.

Put and Call Options on Securities and Indices. MVT may purchase and sell put and call options on securities and indices. A put option
gives the purchaser of the option the right to sell and the writer the obligation to buy the underlying security at the exercise price during the option period. MVT may also purchase and sell options on bond indices (“index options”).
Index options are similar to options on securities except that, rather than taking or making delivery of securities underlying the option at a specified price upon exercise, an index option gives the holder the right to receive cash upon exercise of
the option if the level of the bond index upon which the option is based is greater, in the case of a call, or less, in the case of a put, than the exercise price of the option. The purchase of a put option on a debt security could protect
MVT’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 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 MVT against an increase in the price of a security that it intended to purchase in the future.

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

MVT receives a premium from
writing a call option, which increases MVT’s return on the underlying security in the event the option expires unexercised or is closed out at a profit. By writing a call, MVT 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 MVT’s obligation as a writer continues. Covered call options serve as a partial hedge against a decline in the price of the underlying security. MVT may
engage in closing