What will Linda receive if she redeems her segregated fund contract after resetting the guarantee?

When Linda redeems her segregated fund contract after resetting the guarantee, she will receive the amount specified by the maturity guarantee. This amount is designed to protect the investor by ensuring they receive a minimum value irrespective of market fluctuations. By resetting the guarantee, Linda has chosen to establish a new basis for the amount that will be guaranteed at maturity, which now becomes available to her upon redemption.

It’s essential to understand that the maturity guarantee represents a safety net, often set at a percentage of the contract's original investment, which in this case applies even if the market value of the segregated fund might be different at the time of redemption. Therefore, the correct answer reflects this guarantee structure, capturing the principal protection feature characteristic of segregated funds.