Company: PDCC
Filing Date: 2025-07-18
Form Type: N-2
Source: 0001214659-25-010613
Chunk: 214

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-07-18
Form: N-2
Chunk 214
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 closing transactions. A put option on a security gives the
purchaser of the option the right to sell, and the writer of the option the obligation to buy, the underlying security at any time during
the option period, or for certain types of options, at the conclusion of the option period or only at certain times during the option
period. A call option on a security gives the purchaser of the option the right to buy, and the writer of the option the obligation to
sell, the underlying security at any time during the option period, or for certain types of options, at the conclusion of the option period
or only at certain times during the option period. The premium paid to the writer is the consideration for undertaking the obligations
under the option contract.

The Company may purchase
and write put and call options on foreign currencies (traded on U.S. and foreign exchanges or OTC markets) to manage its exposure to exchange
rates.

Put and call options on indexes
are similar to options on securities except that options on an index give the holder the right to receive, upon exercise of the option,
an amount of cash if the closing level of the underlying index is greater than (or less than, in the case of puts) the exercise price
of the option. This amount of cash is equal to the difference between the closing price of the index and the exercise price of the option,
expressed in dollars multiplied by a specified number. Thus, unlike options on individual securities, all settlements are in cash, and
gain or loss depends on price movements in the particular market represented by the index generally rather than the price movements in
individual securities. Options on indexes may, depending on circumstances, involve greater risk than options on securities. Because stock
index options are settled in cash, when the Company writes a call on an index it may not be able to provide in advance for its potential
settlement obligations by acquiring and holding the underlying securities.

The Company may trade put
and call options on securities, securities indexes and currencies, as the Adviser determines is appropriate in seeking to achieve the
Company’s investment objective, unless otherwise restricted by the Company’s investment limitations.

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The initial purchase (sale)
of an option contract is an “opening transaction.” In order to close out an option position, the Company may enter into a
“closing transaction,” which is simply the sale (purchase) of an option contract on the same security with the same exercise
price and expiration date as the option contract originally opened