Course Description: Stochastic models and statistical methodologies are widely employed in modern finance. The models and their inferences are very important for academic research and financial practices. This course will cover the financial stochastic models and their statistical inferences with applications to volatility analysis and risk management. It will introduce discrete models such as binomial trees and GARCH and stochastic volatility models as well as simple continuous models like the Black-Scholes model. The main focus of the course will be on statistical inference, data analysis and risk management regarding these models. The prerequisite of the course is Stat 309 or Stat 311 or Stat 333 or Math/Stat 431.