First, we transform the mixed fractions into improper fractions:
[tex]\begin{gathered} 2\frac{1}{2}=\frac{2\cdot2+1}{2}=\frac{5}{2}, \\ 1\frac{1}{4}=\frac{1\cdot4+1}{4}=\frac{5}{4}. \end{gathered}[/tex]Then, we multiply the improper fractions:
[tex]\frac{5}{2}\cdot\frac{5}{4}=\frac{5\cdot5}{2\cdot4}=\frac{25}{8}\text{.}[/tex]Finally, we transform the improper fraction into a mixed fraction:
[tex]\frac{25}{8}=\frac{24+1}{8}=\frac{3\cdot8+1}{8}=3\frac{1}{8}\text{.}[/tex]Answer:
[tex]3\frac{1}{8}\text{.}[/tex]