I tried the exercise with the hint that $\phi(x)=|\varphi\star\hat{\varphi}|^2$ could be the solution with $\varphi$ compactly supported and odd. Thus,
\begin{align*} -\varphi\star\hat{\varphi}(x) &=\int_{\mathbb{R}}\varphi(y)\hat{\varphi}(y-x)\mathrm{d}y \\ &=\int_{\mathbb{R}}\varphi(y)\int_{\mathbb{R}}\varphi(z)e^{2\pi iz(x-y)}\mathrm{d}z\mathrm{d}y \\ &=\int_{\mathbb{R}^2} \varphi(z)\varphi(y)e^{-2\pi iyz}e^{2\pi izx}\mathrm{d}z\mathrm{d}y \\ &=\int_{\mathbb{R}}\hat{ \varphi}(z)\varphi(z)e^{2\pi ixz}\mathrm{d}z=(\hat{\varphi}\varphi)^{\vee}(x). \end{align*}
Furthermore,
\begin{align*} \hat{\phi}(x) &=(\hat{\varphi}\varphi)\star(\hat{\varphi}\varphi)(x) \\ &=\int_{\mathbb{R}} \hat{\varphi}(y)\varphi(y)\hat{\varphi}(x-y)\varphi(x-y)\mathrm{d}y \\ &=\int_{\mathbb{R}} \hat{\varphi}(y)\varphi(y)\Bigg(\int_{\mathbb{R}} \varphi(\xi)e^{-i\xi(x-y)}\mathrm{d}\xi \Bigg)\varphi(x-y)\mathrm{d}y \\ &=e^{i\xi x}\int_{\mathbb{R}} \hat{\varphi}(y)\varphi(y)\Bigg(\int_{\mathbb{R}} \varphi(\xi)e^{-i\xi y}\mathrm{d}\xi\Bigg) \varphi(x-y)\mathrm{d}y \\ &=e^{i\xi x}\int_{\mathbb{R}} [\hat{\varphi}(y)]^2\varphi(y)\varphi(x-y)\mathrm{d}y \\ \end{align*}
But here I do not get that $\hat{\phi}$ is positive. Any suggestions? And why do we know that $\phi$ is a Schwartz function?
Thanks for any helps!
I will use the Hint. If $\varphi$ and $\phi$ are as above and $\varphi$ is real, then $$ \hat \phi = (\varphi \star \hat \varphi) ^\wedge \star (\varphi \star \hat \varphi)^\wedge = (\hat \varphi \hat {\hat \varphi}) \star(\hat \varphi \hat {\hat \varphi}). $$ As $\hat {\hat \varphi}(x) = \varphi(-x)$ and being this function odd, we obtain $$ \hat \phi = (\hat \varphi \varphi) \star (\hat \varphi \varphi) $$ As $\varphi$ is odd, $\hat \varphi(\xi) = -2 i \int_0^{+\infty} \sin(\xi x) \varphi(x) $; thus it is possible to choose $\varphi$ so that $\hat \varphi$ - that is purely imaginary, by oddity of the function - has negative imaginary part for positive $\xi$. Hence $\hat \phi$ is nonnegative and compactly supported (being the convolution product of two c.s. functions).
Notice that $\phi$ is a Schwarz function because is the composition of a smooth, locally bounded function with a Schwartz function (to prove this, use the properties of convolution) (Notice also that in your second chain of equalities you can not put the term $e^{i\xi x}$ out of the integral sign.)
How does the Hint come out? If $\psi$ is compactly supported, then $\psi \star \hat \psi$ has compactly supported Fourier transform. Moreover, if $\hat \Psi$ is compactly supported then $(\Psi^2)^\wedge$ is c.s. Then it only remains to choose $\psi$ in order to have the desired sign properties...