How to correct my fault?

We assume that Vt=100;D=80;the riskless interest rate is 5%;the asset volatility=0.3 β(beta)=0.8;0≦β(beta)≦1;T=1 year;t=0.5year;ke=50;normcdf(.) is cumulate standard normal distribution

Ask:1.when X=0:0.1:1year Et=??

clear all
clc
Vt=100;D=80;T=1;t=0.5;r=0.05;sigma=0.3;beta=0.8;K=5;
% x=st;
x=0:0.1:1;
E=Vt*normcdf*(log(Vt/D)+(r+0.5*sigma^2)*(T-t)+(sigma*beta+0.5*beta^2)*(T-t))/(sqrt*sigma^2*(T-t)+beta^2*(T-x)+2*sigma*beta*min(T-t,T-x))-K^-r*(T-t)*normcdf*(log(Vt/D)+(r+0.5*sigma^2)*(T-t)+(sigma*beta+0.5*beta^2)*(T-t))/(sqrt*sigma^2*(T-t)+beta^2*(T-x)+2*sigma*beta*max(T-t,T-x))
plot(r,c0,'-*',r,p0,'-^')
xlabel('volatility')
ylabel('option price')

Could any master help me?? Thank you

Answer 1

[Walter Roberson]

normcdf is a function. Why are you calling the function with no arguments and multiplying the result by something?

normcdf*(log(Vt/D)+(r+0.5*sigma^2)*(T-t)+(sigma*beta+0.5*beta^2)*(T-t))

is the same as

normcdf()*(log(Vt/D)+(r+0.5*sigma^2)*(T-t)+(sigma*beta+0.5*beta^2)*(T-t))

[Li mengru]

E=Vt*(normcdf(log(Vt/D)+(r+0.5*sigma^2)*(T-t)+(sigma*beta+0.5*beta^2)*(T-t))/(sqrt(sigma^2*(T-t)+beta^2*(T-x)+2*sigma*beta*min(T-t,T-x))))...
-K^-r*(T-t)*(normcdf(log(Vt/D)+(r+0.5*sigma^2)*(T-t)+(sigma*beta+0.5*beta^2)*(T-t))/(sqrt(sigma^2*(T-t)+beta^2*(T-x)+2*sigma*beta*max(T-t,T-x))))

I revise it,but it happened another fault.

Error using "/" 

Matrix dimensions must agree.

[Walter Roberson]

Change all of your / to ./, and all of your * to .* and all of your ^ to .^

[Li mengru]

Error:Matrix dimensions must agree.

i try many times,but can not solve it