Research topics for empirical study?

Hi all,
Anyone has some interesting research topics on mind for an empirical study?
I am an undergrad senior...and I'm trying to find some interesting research topics to persuade my professor into supervising my project (that way I might feel more prepared for a master program in quant finance)...he mentioned that he would be more interested in some empirical study and something related to option pricing might be good..I had some preliminary knowledge on option pricing models: B-S and Merton's jump diffusion model...so maybe I can do some study on stochastic volatility models with jumps? But I noticed that there are already abundant literatures that test these models...so it's hard to come up with something new to extend the study in these topics...any other ideas? Also, I am quite curious what kind of pricing models are most commonly used in the industry? Thanks.