Problem 10: Option Replication. Barrick Gold mines and refines ore and sells pure gold in the global market. To raise funds, it sells a derivative security whose payoff is indexed to gold price per ounce (ST) as follows. How would you replicate the payoffs of this security with a combination of puts and borrowing/lending? Problem 10: Option Replication. Barrick Gold mines and refines ore and sells pure gold in the global market. To raise funds, it sells a derivative security whose payoff is indexed to gold price per ounce (ST) as follows. How would you replicate the payoffs of this security with a combination of puts and borrowing/lending