Explanation:

- When an instrument (like a negotiable instrument, e.g., a cheque or promissory note) has been lost, the law presumes something about its status.

- Option 1: expired – This means the instrument is no longer valid due to the passage of time. Loss does not mean expiry.

- Option 2: duly stamped – This means the instrument has all required legal stamps. Loss does not relate to stamping status.

- Option 3: stolen – This means someone took it illegally. Loss doesn’t automatically indicate theft.

- Option 4: misplaced – This means it is simply lost or not where it should be. Law presumes a lost instrument is just misplaced, not expired, stolen, or about stamping.

Correct Answer:

Option 4: misplaced