§ 2-3-824 — 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
W.S. 2-3-813 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.