Company: MYI
Filing Date: 2025-09-05
Form Type: 424B3
Source: 0001193125-25-196285
Chunk: 214

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-09-05
Form: 424B3
Chunk 214
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 buy and the seller the obligation to sell the underlying security or index at the exercise price during the option period or for a specified period prior to a fixed date. The purchase of a call option on a
security could protect MVF against an increase in the price of a security that it intended to purchase in the future.

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

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

Additional Information About Options. MVF’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 (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