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On January 15th, 2018 Bitcoin was trading on the Coinbase exchange located in San Francisco at a price of US$12,979.87 per Bitcoin. At the same

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On January 15th, 2018 Bitcoin was trading on the Coinbase exchange located in San Francisco at a price of US$12,979.87 per Bitcoin. At the same time Bitcoin was trading on the Korbit exchange located in South Korea at a price of KRW 18,799,500. The currency exchange rate at that time was 1064.54 KRW/USS. a. What is Bitcoin? b. How would you perform an arbitrage opportunity given the prices listed above? c. What real-world frictions might explain the price discrepancy

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