I just found out that in order to run Windows Phone emulator I need Hyper-V which is not supported in Windows 10 Home edition. I was offered an upgrade to Pro edition with a funny prize. 139$ for upgrade when I can buy full standalone license for Windows 10 Pro for 125$.
So here I am searching for alternatives to emulating windows phones on Visual Studio 2015 for app development.
Any clues/solution would much be appreciated.
Finally I ended up upgrading to temporary Windows 10 Pro edition. I will be using this for next 30 days and later decide to pay or downgrade to Home edition. Hyper-V and all the Pro features work as expected.
This is the default key to Pro edition given by Microsoft employees: VK7JG-NPHTM-C97JM-9MPGT-3V66T