A company hosts a monolithic web application on an Amazon EC2 instance. Users report poor performance at specific times. CloudWatch shows CPU utilization is 100% during those periods. The company wants to resolve the performance issue and improve availability as cost-effectively as possible. Which combination of steps will meet these requirements? (Choose two.)

The correct options address both immediate performance and long-term scalability and availability. Using AWS Compute Optimizer to recommend an instance type for vertical scaling (upgrading the existing instance) directly resolves the 100% CPU utilization issue by providing more resources. Creating an Auto Scaling group and an Application Load Balancer enables horizontal scaling, distributing traffic across multiple instances and automatically adjusting capacity to meet demand, which improves availability and handles future load spikes cost-effectively. Incorrect options: Creating an AMI and referencing it in a launch template is a step towards horizontal scaling but doesn't, by itself, implement it or solve the immediate CPU bottleneck. Creating an Auto Scaling group and an Application Load Balancer to scale vertically is incorrect because Auto Scaling groups are designed for horizontal scaling (adding or removing instances), not for changing the size of a single instance. Using AWS Compute Optimizer to obtain a recommendation for an instance type to scale horizontally is not the primary use case for Compute Optimizer in this context; it's more focused on rightsizing individual instances (vertical scaling) or recommending optimal instance types for a workload, which can then be used in horizontal scaling configurations.