Company: RIV
Filing Date: 2025-09-05
Form Type: N-CSR
Source: 0001398344-25-017710
Chunk: 77

Company: RIVERNORTH OPPORTUNITIES FUND, INC.
Filing Date: 2025-09-05
Form: N-CSR
Chunk 77
---
-dealers or other
financial institutions participating in such transactions may fail to settle a transaction in accordance with the terms of the option
as written. In the event of default or insolvency of the counterparty, the Fund or an Underlying Fund may be unable to liquidate an over-the-counter
option position.

The Fund may purchase put options. An Underlying
Fund may purchase and sell call and put options with respect to specific securities, and may write and sell covered or uncovered call
and put options. A call option gives the purchaser of the call option, in return for a premium paid, the right to buy the security underlying
the option from the writer of the call option at a specified exercise price within a specified time frame. A put option gives the purchaser
of the put option, in return for a premium paid, the right to sell the underlying security to the writer of the put option at a specified
price within a specified time frame. A covered call option is a call option with respect to an underlying security that a fund owns. A
covered put option is a put option with respect to which a fund has segregated cash or liquid securities to fulfill the obligation of
the option. The purchaser of a put or call option runs the risk of losing the purchaser’s entire investment, paid as the premium,
in a relatively short period of time if the option is not sold at a gain or cannot be exercised at a gain prior to expiration. In selling
put options, there is a risk that the Underlying Fund may be required to buy the underlying security at a disadvantageous price above
the market price. The un-covered writer of a call option is subject to a risk of loss if the price of the underlying security should increase,
and the un-covered writer of a put option is subject to a risk of loss if the price of the underlying security should decrease.

RiverNorth Opportunities Fund, Inc.

The Fund may invest a significant portion of its
total assets in Underlying Funds that write covered call options. To the extent that an Underlying Fund writes a covered call option,
it forgoes, during the option’s life, the opportunity to profit from increases in the market value of the security covering the
call option above the sum of the premium and the strike price of the call, but has retained the risk of loss should the price of the underlying
security decline. As the writer of the option, the Underlying Fund bears the market risk of an unfavorable change in the price of the
security underlying a written option.