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I believe that Shylock is the real tragic hero of the play. Shylock is a Jew and according to the laws of Venice, Jews were not allowed to own property. Practicing Usury was against Christianity. In such a case Jews were forced to make a living by doing something or the other in order to live. Shylock was more sinned against than sinning. He was insulted by Christians especially Antonio at the realto. He was called a dog, and was spat on the face by Antonio. Jews were forced to wear red caps just to reveal their identity.
In the words of Shylock, " If you tickle us, do we not laugh, If you prick us do we not bleed, we are treated by the same means if we fall sick, Jews have passions, affections, afflictions etc, These words clearly show that he was ill treated and wanted to take revenge going hard by the law. He planned to take his revenge on Antonio but was ready to give the loan of 3000 ducats for three month. But he executed a bond that if the money was not returned before the stipulated period of time he is entitled to cut a pound of flesh from Antonio's body. He gave the loan without any interest and that too in the name of friendship. He did not expect that he would get a chance to take revenge on Antonio. He was also not sure that Antonio's ships would be lost at sea. Initially when the message was received by Basanio it was mentioned that all the ships of Antonio were lost in the sea.
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