Company: MYI
Filing Date: 2025-07-16
Form Type: N-14 8C
Source: 0001193125-25-159991
Chunk: 168

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-07-16
Form: N-14 8C
Chunk 168
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 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 transactions in order to terminate outstanding options that it has written.

Additional Information About Options. MVT’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

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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 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 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 or sold to dealers,
financial institutions or other counterparties which have entered into direct agreements with MVT. With OTC options, such variables as expiration date, exercise price and premium will be agreed upon between MVT and the counterparty, without the
intermediation of a third party such as the OCC. If the counterparty fails to make or take delivery of the securities underlying an