The replacement cost is calculated at the netting set level as a simple algebraic sum (floored at zero) of the derivatives’ market values at the reference date. Thus, using the market values indicated in the table (expressed in thousands):

RC = max {V - C; 0} = max {30 - 20 + 50; 0} = 60
 

Since V-C is positive (equal to V of 60,000), the value of the multiplier is 1, as explained in the Standards.