  In the compagnion paper [Marginal density expansions for diffusions and
stochastic volatility, part I] we discussed density expansions for
multidimensional diffusions $(X^1,...,X^d)$, at fixed time $T$ and projected to
their first $l$ coordinates, in the small noise regime. Global conditions were
found which replace the well-known "not-in-cutlocus" condition known from
heat-kernel asymptotics. In the present paper we discuss financial
applications; these include tail and implied volatility asymptotics in some
correlated stochastic volatility models. In particular, we solve a problem left
open by A. Gulisashvili and E.M. Stein (2009).
