Finance School of Management Chapter 11 Contents 11. 1 Using Forward Futures 11.6 Basic Features of Contracts to Hedge risks Insurance Contracts 11.2 Hedging Foreign 1.7 Financial Guarantees Exchange Risk with Swap Contracts 1. 8 Caps floors on 11.3 Hedging Shortfall-Risk by Interest rates Matching Assets to 11.9 Options as Insurance Liabilities 11.10 The Diversification 11. 4 Minimizing the Cost of Principle Hedging 1111 Insuring a diversified 11.5 Insuring versus Hedging Portfolio uesTc2 Finance School of Management Chapter 11 Contents 11.1 Using Forward & Futures Contracts to Hedge Risks 11.2 Hedging Foreign- Exchange Risk with Swap Contracts 11.3 Hedging Shortfall-Risk by Matching Assets to Liabilities 11.4 Minimizing the Cost of Hedging 11.5 Insuring versus Hedging 11.6 Basic Features of Insurance Contracts 11.7 Financial Guarantees 11.8 Caps & Floors on Interest Rates 11.9 Options as Insurance 11.10 The Diversification Principle 11.11 Insuring a Diversified Portfolio