The correct option is D hyperbola
Let xy=c2 be the rectangular hyperbola and let P(x1,y1) be apoint on it. Let Q(h.k) be the
midpoint of PN. Then the coordinates of Q are (x1,y1/2)
∴x1=hy12=k⇒x1=h,y1=2k
But (x1,y1) lies on xy=c2
∴h(2k)=c2⇒hk=c22
Hence the locus of (h,k) is xy=c22which is a hyperbola.