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  • The Financial Encyclopedia
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  • June 9, 2022
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Occupation Time

With respect to barrier options, it is a method to calculate the time spent outside the barrier, whereby all the time, up to a specific point in time, the underlying spends below or above the barrier is added up and accumulated. The occupation time, in this sense, represents the aggregation of all excursion time intervals before the specific point in time. Cumulative Parisian options are based on occupation time.


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