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(NOTE: Polygenix AgileTest supports some of these features. However, AgileTest is a commercial product.)
By commonly accepted definitions, an "Argument" is a value recieved by a called function, while a "Parameter" is a value passed by the caller. This is an important distinction when considering pass-by-reference as opposed to pass-by-value, but in most cases it is an irrelevant distinction, especially in easymock where the "real" method is never actually invoked for a mocked call. It's the same football, but you call it something different depending on whether you are kicking or catching it. JavaWorld has a good article describing this issue: Does Java pass by reference or pass by value?. O'Reilly's Java in a Nutshell by David Flanagan puts it best: "Java manipulates objects 'by reference,' but it passes object references to methods 'by value.'".
I chose the term argument because: 1) VirtualMock mostly interacts with values that have already been passed in to mocked or invoked method calls, and are technically considered "arguments" at that point, and 2) more imporantly, "arg" has fewer letters and syllables than "param", and is therefore easier to type and say :)