Given a space of all real-valued continuous function $C[0,1]$ with $sup$ norm, define $$F:C[0,1]\rightarrow C[0,1]\text{ by } F(x)(t)=x(0)+\lambda\int_{0}^{t}x(s)ds$$ $\lambda\in\mathbb{R}$ with $|\lambda|<1$ and $t\in [0,1]$.
I cannot understand whether $x(0)$ will be treated as a constant or it will change during the proof.
Thanks in advance.
In my opinion $x(0)$ has to be a given constant. Imagine you have found a fix point $x$ of $F$, i.e. $F(x)=x$. Then for every $\alpha\in\mathbb{R}$ the function $\alpha\cdot x$ satisfies $F(\alpha x)=\alpha x$. This would contradict the uniqueness part of the contraction mapping principle.
EDIT: Let's sketch a proof: Let $y,z\in C^0([0,1])$, then $$|F(z)(t)-F(y)(t)|=|x(0)-x(0) + \lambda \int_0^tz(s)-y(s)ds|\leq\lambda\int_0^t|z(s)-y(s)|ds.$$ Hence $$\sup_{t\in[0,1]}|F(z)(t)-F(y)(t)|\leq \lambda \sup_{t\in[0,1]}|z(t)-y(t)|.$$ Since $0<\lambda<1$ this gives you a contraction. This yields a $y\in C^0([0,1])$ such that $$y(t)=F(y)(t)=x(0)+\lambda\int_0^ty(s)\, ds.$$ If you like to know how $y$ looks like, you either derive the whole equation by $t$ and obtain an ordinary differential equation or you can try a fix-point iteration, i.e. $z_n:=F(z_{n-1})$, $z_0=0$. The result will be something along the lines of an exponential function.