Company: MYI
Filing Date: 2025-09-08
Form Type: DEF 14A
Source: 0001193125-25-198172
Chunk: 193

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-09-08
Form: DEF 14A
Chunk 193
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 underlying an option it has written, or otherwise settle the transaction in accordance with the terms of that option as written, MIY 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 MIY 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.

MIY may engage in
options and futures transactions on exchanges and options in the over-the-counter markets. MIY 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. MIY is authorized
to purchase and sell certain exchange traded 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 MIY’s return. However, any transactions involving financial futures or options (including puts and calls associated therewith) will be in accordance with MIY’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. To hedge its portfolio, MIY may take an investment position in a futures contract which will move in the opposite direction from the portfolio position being hedged.
A sale of financial futures contracts may provide a hedge against a decline in the value of portfolio securities because such depreciation may be offset,

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in whole or in part, by an increase in the value of the position in the financial futures contracts. A purchase of financial futures contracts may provide a hedge against an increase in the cost
of securities intended to be purchased because such appreciation may be offset, in whole or in part, by an increase in the value of the position in the futures contracts.

D