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The gamma and vega of a delta-neutral portfolio are 75 per $ and 15 per %, respectively. What will happen to the value of the portfolio when there is a shock to the market causing the underlying asset price to decrease by $4 and its volatility to increase by 5%?
A. The value of the portfolio will decrease by $600.75.
B. The value of the portfolio will decrease by $675.
C. The value of the portfolio will increase by $600.75.
D. The value of the portfolio will increase by $675.
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