N.Y. EPT Law § 11-A-4.14

§ 11-A-4.14 Derivatives and options\n (a) In this section, "derivative" means a contract or financial\ninstrument or a combination of contracts and financial instruments which\ngives a trust the right or obligation to participate in some or all\nchanges in the price of a tangible or intangible asset or group of\nassets, or changes in a rate, an index of prices or rates, or other\nmarket indicator for an asset or a group of assets.\n (b) To the extent that a trustee does not account under 11-A-4.3 for\ntransactions in derivatives, the trustee shall allocate to principal\nreceipts from and disbursements made in connection with those\ntransactions.\n (c) If a trustee grants an option to buy property from the trust,\nwhether or not the trust owns the property when the option is granted,\ngrants an option that permits another person to sell property to the\ntrust, or acquires an option to buy property for the trust or an option\nto sell an asset owned by the trust, and the trustee or other owner of\nthe asset is required to deliver the asset if the option is exercised,\nan amount received for granting the option must be allocated to\nprincipal. An amount paid to acquire the option must be paid from\nprincipal. A gain or loss realized upon the exercise of an option,\nincluding an option granted to a settlor of the trust for services\nrendered, must be allocated to principal.\n