example.cs

//<Snippet1>
using System;

public class Type1 {}
public class Type2 : Type1 {}
public class Type3 : Type2 {}

public class Program
{
    public static Type3 MyMethod(Type1 t)
    {
        return t as Type3 ?? new Type3();
    }

    static void Main() 
    {
        Func<Type2, Type2> f1 = MyMethod;

        // Covariant return type and contravariant parameter type.
        Func<Type3, Type1> f2 = f1;
        Type1 t1 = f2(new Type3());
    }
}
//</Snippet1>