Suppose that user A has a known requirement to send 10 ETH to another party B 60 days from now, and user A does not currently have enough USDC to purchase 10 ETH but will receive a loan from a bank for 20,000 USDC in 60 days (or less). User A doesn’t know the price that 10 ETH will be, and if the price of ETH is higher than 2,000 USDC, then his loan from the bank will not allow him to purchase the full 10 ETH. As such, he can purchase a Call contract (which can be thought of as similar to an insurance contract) for 10 ETH with a strike of 2,000. If the price of 1 ETH is less than 2,000 USDC when he receives the 20k USDC loan, then he will simply purchase the ETH in the open market, but if the price of ETH is greater than 2,000 — because of the Call, he can exercise the contract, deliver the 20k USDC to the call writer, and receive his 10 ETH.