Martha is a speculator who trades futures contracts for the S&P 500. She shorts these contracts because she has a bearish view of the stock market, thinking it will decline over the next 2 months, or around mid-march 2019. She's aware that anything can happen and decides to limit her potential loss by buying call options on the S&P 500 that expires on March 17, 2019. The following is the prices & the index is currently at 3683: