(i) Bassanio and Shylock are at a-public place in Venice. Bassanio meets Shylock so that he might borrow three thousand ducats for three months from Shylock on the personal security of Antonio and thus might fulfil his requirement of money for going Belmont and trying his luck in wooing Portia to marry him. 

(ii) When Bassanio approaches Shylock to ask for loan of three thousand ducats for three months on Antonio’s surety, Shylock weighs the risk involved in advancing the money and depicts the risks in view of Antonio’s investments. He tells Bassanio that despite all these risks to his capital Antonio’s surety is acceptable. At this Bassanio consoles him saying that he (Shylock) should be assured that there is no risk to money he (Shylock) is going to lend him (Bassanio). About Antonio’s ventures, Shylock says that Antonio has invested all his capital in trading by sea-going ships. But the ships can come to harm because of the vulnerability of the material they are made of or due to the error committed by men. He further adds that there are other risks to which these investments are exposed such as rats which can cause harm at sea or land and the pirates at the sea and thieves on land who too can cause great damage and there are also natural hazards of storms and rocks. 

(iii) When Bassanio requests Shylock to dine with them, he refuses to accept his invitation saying that he will not like to smell the pork hnd eat the flesh of that evil animal into which the devil was put by Jesus of Nazareth. He further adds that he is prepared to have business dealings, social dealings and such other dealings with them (Christians) but he is not prepared to eat or practise religious rites with them. 

(iv) When Antonio enters the scene, Shylock, in a soliloquy, gives vent to his loathing with which he regards him, Shylock is bitter because Antonio lends money without interest and thus spoils his business as a usurer. He is also bitter because Antonio hates his sacred nation and constantly chides him for changing interest. 

(v) When Bassanio asks Shylock to home dinner with them, Shylock contemptuously turns down Bassonio’s request. Speaking to him ironically, he says that he should come to dine in order to smell pork which is prohibited in Judaism. He says that Jesus Christ who hails from Nazareth had made the devil to live in the swine.