Management has carefully evaluated the likelihood and impact of events on its foreign operations. In the event of a $3$ percent

variation in exchange rate, the impact is estimated at $$10$ million without any action taken by management and $$4$ million if the

company purchases a hedge instrument. The impact of the residual risk of changes in foreign currency exchange on achieving

the company's business objectives is:

A$.$ $$14$ million.

B$.$ $$10$ million.

C$.$ $$6$ million.

D$.$ $$4$ million.