Final answer:
The capital gain from the increase in XYZ stock price from $10 to $15 for 100 shares is $500, which is option C.
Step-by-step explanation:
The question pertains to the concept of capital gain in the context of buying and selling stocks. Capital gain is the profit realized when the selling price of an asset exceeds its purchase price. To calculate the capital gain when the price of XYZ stock rises from $10 to $15, you must subtract the original purchase price from the selling price and multiply by the number of shares owned. The formula for capital gains is:
Capital Gain = (Selling Price - Purchase Price) × Number of Shares
By applying this formula, you get the following calculation:
Capital Gain = ($15 - $10) × 100 = $5 × 100 = $500
Therefore, if you own 100 shares of XYZ stock and the price per share increases from $10 to $15, your capital gain would be $500, which corresponds to option C.