Volatility and volatility-linked derivatives: estimation, modeling, and pricing

This article serves the purpose of reviewing recent developments of the estimation and modeling of volatilities for financial products as well as on the pricing and hedging of financial derivatives that are related to volatility under certain models. It also provides a reading guide for the contributed papers. Emphases are put on continuous processes in continuous time. Discrete time models and models with jumps are not included in the discussion. Presentation of the article is more intuitive and heuristic rather than mathematically sound and rigorous in nature.