Gain/Loss from Asset Value in Forward Contract

CFA Level II
#1

I am confused by the answers given by the CFA Text, Question 4(D), R60.

An investor doesn’t yet own the asset, intend to buy the asset (current price $225), so he long the forward, with forward price of $235.69 (from answer in A).

If asset price at T is $190, why is there a gain on assets? The investor has commited to buy the asset at $225 and the asset price drops to $190. Isn’t that a loss as due its commitment, he needs to buy at higher price?

Please enlighten me. Thanks a lot.

#2

I haven’t read the question, but I think what was meant is that it is a cash settled forward - and therefore a realized loss on the forward leg but a notional ‘gain’ on the asset leg.