If a=0∈S or a=1∈S then for any b∈S we have ab∈S which is obvious. So we can suppose that a,b∈/{0;1}.
From 1∈S, a∈S we have 1−a∈S→(1−a)−1=−a∈S, then
b−(−a)=a+b∈S.
We also have a−1∈S so a1,a−11∈S then
a−11−a1=a(a−1)1∈S→a(a−1)∈S.
Since a∈S, a(a−1)∈S then a2=a(a−1)+a∈S. Similarly, we also have b2∈S. Thus a,b∈S→a+b∈S→(a+b)2∈S.
Finally, (a+b)2−a2=2ab+b2∈S and (2ab+b2)−b2=2ab∈S which implies that
2ab1+2ab1=ab1∈S→ab∈S.