See also post on equity forward. Better become very very comfortable answering these questions. They should be in your blood:)
Q: daily mark to market of an existing position, on some intermediate date “t” before maturity.
Q: market risk of an existing long position?
A: similar to a simple long spot position. When underlier appreciates, we have a positive PnL. “Logistics”.
Q: delta of such an existing fwd contract?
There are many relationships among many variables –
K, T — part of the contract specification
Z0, S0, — observable today
F0 — defined in the EE context as the MTM value of a new position. Almost always $0
ZT := 1.0, ST, FT := ST – K
Zt, St, Ft, — where t is an intermediate time between now and T. Since t is in the future, these values are unknown as of today.
An interviewer could ask you about the relationship among any 3 variables, or the relationship among any 4 variables.
Warning — I use F0 to denote today’s price of an off-mkt fwd contract with K and T. Some people use F0 to denote the fwd price of the stock S.