Company: RIV
Filing Date: 2025-09-05
Form Type: N-CSR
Source: 0001398344-25-017710
Chunk: 42

Company: RIVERNORTH OPPORTUNITIES FUND, INC.
Filing Date: 2025-09-05
Form: N-CSR
Chunk 42
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 Hedging Positions. The Fund’s investments
in derivatives will be included under the 80% policy noted above so long as the underlying asset of such derivatives is a closed-end fund
or Underlying Fund, respectively. The Adviser intends to use Hedging Positions to lower the Fund’s volatility but they may also
be used to seek to enhance the Fund’s return. A short sale is a transaction in which the Fund sells a security that it does not
own in anticipation of a decline in the market price of the security. To complete the short sale, the Fund must arrange through a broker
to borrow the security in order to deliver it to the buyer. The Fund is obligated to replace the borrowed security by purchasing it at
a market price at or prior to the time it must be returned to the lender. The price at which the Fund is required to replace the borrowed
security may be more or less than the price at which the security was sold by the Fund. The Fund will incur a loss if the price of the
security sold short increases between the date of the short sale and the date on which the Fund replaces the borrowed security. The Fund
will realize a gain if the price of the security declines between those dates.

The Adviser performs both a quantitative and qualitative
analysis, including fundamental and technical analysis to assess the relative risk and reward potential for each SPAC investment. Among
other things, the Adviser will evaluate the management team’s strategy, experience, deal flow, and demonstrated track record in
building enterprise value. The Adviser will also evaluate the terms of each SPAC offering, including the aggregate amount of the offering,
the offering price of the securities, the equity yield to termination, the option value of warrants, the sponsor’s interest in the
SPAC, and the expected liquidity of the SPAC’s securities. The Fund will purchase securities of SPACs in their initial public offerings
and in the secondary market.

In selecting SPAC investments, the Adviser will
also utilize trading strategies and programs to seek to derive value from buying and selling SPAC securities, including units, common
shares and warrants. Under normal market conditions, the Fund intends to purchase SPAC securities in an initial public offering and opportunistically
buy and sell SPAC securities on the secondary market prior to a SPAC’s initial business combination. The Fund does not intend to
hold common shares after a SPAC’s initial business combination has been completed other than common shares obtained temporarily
through the conversion of a SPAC