Answer: 1.0694

To calculate the EUR/GBP cross rate, the formula is USD/GBP multiplied by the inverse of USD/EUR (i.e., EUR/USD). This ensures the intermediary currency (USD) cancels out. The correct calculation is: \[ \text{EUR/GBP} = \text{USD/GBP} \times (\text{USD/EUR})^{-1} = 1.2604 \times \frac{1}{1.1786} \approx 1.0694 \] Option A incorrectly inverts the USD/EUR rate and calculates GBP/EUR instead. Option C multiplies the two rates directly without inversion, leading to an incorrect result.

Author: LeetQuiz Editorial Team