Error: Not enough input arguments

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Hi all, Im working on a code that simulates a stock price over two years and then compares it to a strike price (call options). I want to simulate the stock price 3000 for each starting value (30 to 150), then take the average payout (for that particular staring price) and plot that vs the starting price. The idea is that if the final price is higher than the strike price (starting price) you get a payout equal to the difference between the final and strike price, if not you get 0.
I keep getting an error (Not enough input arguments.) gives the error in the line.
for m = 1 : n_iterations
Here is my code.
r = 0.05;
T = 2;
dt = 1/365;
sigma = sqrt(r);
rng('shuffle')
n_iterations = 3000;
eta = randn(365*T+1, n_iterations);
S = zeros(365*T, n_iterations);
for S_0 = 30 : 150
S(1, :) = S_0 ;
n = 1 : n_iterations;
for k = 1 : 365*T
S(k+1, n) = S(k, n) + S(k, n).*r.*dt + sqrt(dt).*sigma.*S(k, n).*eta(k, n);
end
strike = S_0;
price = S((365*T + 1), :);
eurocallreturn(strike, price, n_iterations);
avereturn = mean(eurocallreturn);
% hold on
% plot(strike, avereturn)
% xlabel('Price')
% ylabel('Return')
end
%plot([50:130], exp(0.05*2)*blsprice([50:130], 90, 0.05, 2, sqrt(0.05)))
function R = eurocallreturn(strike, price, n_iterations)
for m = 1 : n_iterations
R = zeros(1, n_iterations);
if price(m) > strike
R(m) = price(m) - strike;
else if price(m) <= strike
R(m) = 0;
end
end
end
end
%Why is it giving me this error? I have 3 inputs into the function,
% and all these inputs are clearly defined before the function is called?

Accepted Answer

Walter Roberson
Walter Roberson on 24 Sep 2019
eurocallreturn(strike, price, n_iterations);
That line calls the function to compute a value, and then discards the value because the semi-colon says not to display what was returned.
avereturn = mean(eurocallreturn);
And there is a second call to eurocallreturn, this one without arguments -- not enough input arguments.
Perhaps
euroreturns = eurocallreturn(strike, price, n_iterations);
avereturn = mean(euroreturns);

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