1. A derivatives portfolio has the following greeks: (1) delta=0.5, (2) vega=100 (per%), and (3) gamma=10.

a. Compute the change in the value of the portfolio when the underlying increases from $100 to $105.

b. Compute the change in the value of the portfolio when volatility decreases from 12% to 10%.

c. Compute the change in the value of the portfolio when the underlying increases by $3 and decreases by $3.