Linprog DOES allow you to set options if you pass them in properly.
READ THE ERROR MESSAGE.
linprog has a problem with the variable X0, or what you passed in as X0.
The argument list for linprog expects X0 as the next argument after UB to be X0.
You passed in a structure in that argument.
If you don't intend to pass in a variable, such as X0, then pass in an empty array  as a placeholder.