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AWS Certified Solutions Architect - Associate · AWS
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Reserved and spot instances are cheaper than on-demand ones.
couldn't decide between B and C, but C seems right. The thing with reserved instances is that you have to commit for 1 or 3 years, which is not mentioned in this use case.
Though ASG is not mentioned but it is implied. Mixing on-demand and spot is the best to save money. Reserved is expensive because you need to pay on the capacity all times.