EN
The purpose of this article is to present the concept of Black and Scholes option pric-ing formula, with special emphasis on the three key economic and mathematical ideas that made it possible to develop the framework. An additional aim is to conduct an analysis of the WIG20 index implied volatility in order to determine whether the polish financial options market functions accordingly to the assumptions of Black and Scholes model or rather in a way that has been observed on a bigger, more liquid derivatives market. The article describes the classical way of deriving the Black and Scholes partial differential equation and presents some possible applications of the Black Scholes model outside of straightforward option pricing. In the empirical part of the article, an estimation of WIG20 index implied volatility for a three - year period ranging from 2009 to 2011 is conducted based on the daily quotes of options, futures and the index itself. The results suggest that WIG20 implied volatility follows patterns observed on other markets, what indicates that the assumptions of the model are not fully met on the Warsaw Stock Exchange.