Section 11-A-4.14. Derivatives and options

(a)  In  this  section,  "derivative"  means  a  contract or financial
  instrument or a combination of contracts and financial instruments which
  gives a trust the right or obligation to  participate  in  some  or  all
  changes  in  the  price  of  a  tangible or intangible asset or group of
  assets, or changes in a rate, an index of  prices  or  rates,  or  other
  market indicator for an asset or a group of assets.
    (b)  To  the extent that a trustee does not account under 11-A-4.3 for
  transactions in derivatives, the trustee  shall  allocate  to  principal
  receipts   from   and   disbursements  made  in  connection  with  those
  transactions.
    (c) If a trustee grants an option to  buy  property  from  the  trust,
  whether  or  not the trust owns the property when the option is granted,
  grants an option that permits another person to  sell  property  to  the
  trust,  or acquires an option to buy property for the trust or an option
  to sell an asset owned by the trust, and the trustee or other  owner  of
  the  asset  is required to deliver the asset if the option is exercised,
  an amount  received  for  granting  the  option  must  be  allocated  to
  principal.  An  amount  paid  to  acquire  the  option must be paid from
  principal. A gain or loss realized  upon  the  exercise  of  an  option,
  including  an  option  granted  to  a  settlor of the trust for services
  rendered, must be allocated to principal.