I should say "it depends" as there are probably scenarios where both answers are valid, however the most reasonable answer is "the context should be disposed as soon as it is not needed" which in practice means "dispose rather sooner than later".
The risk that comes from such answer is that newcomers sometimes conclude that the context should be disposed as otfen as possible which sometimes lead to a code I review where there are consecutive "usings" that create a context, use it for one or two operations, dispose and then another context comes up next line. This is of course not recommended also.
In case of web apps, the natural lifecycle is connected with a lifecycle of web requests. In case of system services / other long running applications one of lifecycle strategies is "per business process instance" / "per usecase instance" where business processing / use case implementations define natural borders where separate instances of contexts make sense.