Go to the Industry Center of Yahoo Finance Web site at biz.yahoo.com/ic/ind_index.html. The "Processed & Packaged Goods" industry is made up of companies that buy commodities and package and/or transform them into food for retail customers. Review the list of companies (under "Industry Browser") in the industry and review the company profile of any firm of interest to you. Link to that company's home page, investor relations, and SEC filings. Review the latest 10K filing or annual report for management's discussion of risk management activities.

a. What areas of risk does the firm manage with derivative contracts?

b. Given the company's products and the commodities they are derived from, what futures and options contracts would make most sense for hedging price risk? Review the list of futures and options contracts traded on exchanges. (See the menu ·currencies, Agricultural," etc., at www.site-by-site.com/usa/optfut.htm.)