Professor Li's current research interests are in theoretical and empirical asset pricing, term structure of interest rates, hedge funds, and financial econometrics. His recent works have developed econometric methods for analyzing continuous-time finance models driven by jump diffusions and Levy processes using underlying and derivative prices. He has developed and tested multi-factor term structure models for pricing and hedging interest rate derivatives and options embedded in corporate bonds. He has also developed asset pricing tests in absence of arbitrage and applied them to evaluate hedge fund returns. Professor Li has published in the Journal of Finance, the Journal of Financial Economics, the Review of Finance Studies, the Journal of Econometrics, and other finance and economics journals. Professor Li received the Sterling Prize Fellowship from Yale University, the Trefftz Award from the Western Finance Association, and a research grant from the Q-group.