quick question: bull call spread

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adidas4628

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bull call spread Profit = max(0,St – X1) – max(0,St – X2) – c1 + c2
I am wondering where is the term St – So ???
Thanks for the explanation.
 
there is no ST - S0 term.
When ST < X1 -> max loss -> -c1 + c2
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If X1 < ST < X2
Profit = ST - X1 - c1 + c2
Equating to 0 -> gives you break even ST* = X1 + C1 - C2
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If ST > X2 (since X2 > X1)
you get Profit = St - X1 - (St - x2) - c1 + c2
= X2 - X1 - C1 + c2
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thx, but is there a better explanation why there is no St-So ?
 
payoff has St-so only when you own the underlying. Here you own only the options.
 
also if there is no S0 in the equation - how does it magically get created ?
 
Profit = Profit from long call + profit from short call.
Thus, Profit = VT – c1 + c2, (VT = value of long call – Value of short call)
 
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