Company: MYI
Filing Date: 2025-09-02
Form Type: N-14 8C/A
Source: 0001193125-25-193985
Chunk: 187

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-09-02
Form: N-14 8C/A
Chunk 187
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 period prior to a fixed date. The purchase of a call option on a security could protect MIY against an increase in the price of a security that it intended to
purchase in the future.

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

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

Additional Information About Options. MIY’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 (“”) 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 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