First we prove that \(M^\times\) is closed under the binary operation on \(M\text{.}\) Given \(m, n \in M^\times\text{,}\)
\begin{align*}
\left(n^{-1}m^{-1}\right)(mn) \amp= n^{-1}\left(m^{-1}(mn)\right)\\
\amp= n^{-1}\left(\left(m^{-1}m\right)n\right)\\
\amp= n^{-1}\left((1)n\right)\\
\amp= n^{-1}n\\
\amp= 1
\end{align*}
and
\begin{align*}
(mn)\left(n^{-1}m^{-1}\right) \amp= m\left(n\left(n^{-1}m^{-1}\right)\right)\\
\amp= m\left(\left(nn^{-1}\right)m^{-1}\right)\\
\amp= m\left(1m^{-1}\right)\\
\amp= mm^{-1}\\
\amp= 1
\end{align*}
by associativity of the binary operation on \(M\text{.}\) Hence \(mn\) has an inverse, \(n^{-1}m^{-1}\text{,}\) and so \(M^\times\) is closed under the binary operation on \(M\text{.}\) Moreover, the binary operation remains associative when restricted to \(M^\times\text{.}\) This establishes that \(M^\times\) is a semigroup under the binary operation on \(M\text{.}\)
To see that
\(M^\times\) is a monoid, we observe that
\(1 \in M^\times\) because
\(1^{-1} = 1\text{.}\) Finally, we note that every element of
\(M^\times\) has an inverse by definition. Therefore
\(M^\times\) is a group under the binary operation on
\(M\text{.}\)