$Att=0$ you long a forward contract $to$ buy a stock for price $Kat$ a future date $T.$

$1\mathrm{.}1.(4)$ Prove that the value $of$ the forward contract $att=0is$

$V_0=S_0-KP(0,T)$

$1\mathrm{.}2.(4)At$ a later time $t>0F_{t}P$&$Lis(Suppose$ that you

haven't hedged the first forward contract, and ignore the funding cost for the

first contract$)$

$P$&$L=[S_t-S_0]-K[P(t,T)-P(0,T)]$