 Solution

For a locally small category $\mathcal{C}$, an object $A$, and a functor $F:\mathcal{C}\to \mathbf{Set}$, the covariant form of the Yoneda lemma is the natural bijectionFor $x\in F(A)$ define ${\alpha }_B^x(f)=F(f)(x)$, where $f:A\to B$. For $u:B\to D$, functoriality gives $F(u){\alpha }_B^x(f)=F(uf)(x)={\alpha }_D^x(uf)$, so this is a natural transformation. Conversely, naturality of $\alpha$ at $f:A\to B$ gives ${\alpha }_B(f)=F(f){\alpha }_A(1_A)$. The two constructions are inverse. They are natural in $F$, because a natural transformation $F\Rightarrow G$ commutes with evaluation. They are also natural in $A$: an arrow $v:A^{\prime }\to A$ induces $\mathcal{C}(A,-)\to \mathcal{C}(A^{\prime },-)$ by precomposition, and the resulting map $\mathrm{Nat}(\mathcal{C}(A^{\prime },-),F)\to \mathrm{Nat}(\mathcal{C}(A,-),F)$ corresponds to $F(v):F(A^{\prime })\to F(A)$. Applying the result to the opposite category gives $\mathrm{Nat}(\mathcal{C}(-,A),H)\cong H(A)$ for $H:{\mathcal{C}}^{\mathrm{op}}\to \mathbf{Set}$.

Now let $\mathcal{C}$ be a small category, and let $F,G:\mathcal{C}\to \mathbf{Set}$. Finite products in a category in $[\mathcal{C},\mathbf{Set}]$ exist pointwise; the terminal functor is the constant singleton functor. Define the exponential of covariant set-valued functors bySmallness ensures that these natural transformations form a set. For $u:C\to D$, define $(G^F)(u)(\alpha )$ at $E$ byPrecomposition respects identities and composition, so this defines a functor. Its evaluation map of an exponential object isTo check naturality, for $u:C\to D$ both sides give ${\alpha }_D(u,F(u)x)$: one side uses naturality of $\alpha$, and the other uses the defining action of $G^F$.

Here is the full universal property. Given $\theta :H\times F\Rightarrow G$, define $\hat{\theta }:H\Rightarrow G^F$ byFor $w:D\to E$, naturality of $\theta$ makes this commute with $G(w)$, so ${\hat{\theta }}_C(h)$ is a natural transformation. Replacing $h$ by $H(u)h$ is the same as precomposing $v$ by $u$, proving naturality in $C$. Conversely, $\beta :H\Rightarrow G^F$ gives ${\theta }_C(h,x)={\beta }_C(h{)}_C(1_C,x)$. Starting with $\theta$ recovers it immediately. Starting with $\beta$, its naturality at $v:C\to D$ yieldsso it too is recovered. The formulas are natural in $H$ and $G$, giving the required adjunction $(-)\times F⊣(-{)}^F$. Therefore the covariant functor category is cartesian closed. This proof supplies the actual exponential and does not need a colimit presentation of its arguments.

Finally suppose $\mathcal{C}$ itself is a small category which is a Cartesian closed category. In its presheaf category, the same construction, applied to ${\mathcal{C}}^{\mathrm{op}}$, givesThe first isomorphism uses the product's universal property: a map into $C\times A$ is precisely a pair of maps into $C$ and $A$. The next is the Yoneda lemma, and the last is the exponential adjunction in $\mathcal{C}$. Each step is natural in $C$, $A$, and $B$. Under these identifications, evaluation corresponds to $Y$ of the evaluation $B^A\times A\to B$. Hence the Yoneda embedding preserves exponentials, with the natural identification $\boxed{Y(B^A)\cong (YB{)}^{YA}}$.