The correct option is C a2
Any point on the auxiliary circle x2+y2=a2 is P(acosθ,asinθ) chord of contact of tangents from P(acosθ,asinθ) to x2−y2=a2 is
xcosθ−ysinθ=a.....(1)
If (x1,y1) is the mid-point of this chord, then its equation is
T=S1(i.e.,)xx1−yy1=x21−y21....(2)
Identifying (1) and (2) we have cosθx1=sinθy1=ax21−y21
Eliminating θ ,we have 1=a2x21+a2y21(x21−y21)2
∴ locus of (x1,y1) is (x2−y2)2−a2(x2+y2)=0
Hence r=a2