Hi, guys...
M: Do you mind if I borrow your newspaper?
W:_________________
Responding to the man's request,
can I say " Sure, go ahead" meaning that I'll allow him to read
my newspaper?
Do you mind is more formal than "Can I read your paper?"
So if you say "Sure, go ahead.", you allow him to read your paper.
But you could also say
Of course
No, I don't (mind)(at all)