This course is the key course for the finance major, which attempts to offer an introduction to the exciting world of modern financial theories with a reasonable depth. The course will survey a number of topics in financial economics, such as why we need the financial market, the fundamental theory of finance, measurement of risk preference, CCAPM, prospect theory etc. The main focus of the course will be on modeling and quantitative aspects of theories. However, the empirical evidence related to each topic will be also reviewed.