Let $R=\mathbb{R}[X,Y]/(XY-1)$ be the ring of polynomial functions pn the unit hyperbola. How do I prove that $R$ is a principal ideal domain with unit group $$R^*=\{cX^i\text{mod}(XY-1):c\in\mathbb{R}^*,i\in\mathbb{Z}\}\cong\mathbb{R}^*\times<X>?$$
I know that $R$ is isomorphic with the ring of Laurent polynomials, but how can I use that?
A principal ideal domain is a ring where every nonzero prime ideal has height one. First notice that $(XY-1)$ is a prime ideal. And any prime ideal $p$ of the ring $\frac{\mathbb{R}[X,Y]}{(XY-1)}$ is in one to one correspondence to the prime ideals of the ring $\mathbb{R}[X,Y]$ containing $(XY-1)$. Now as the dimension of $\mathbb{R}[X,Y]$ is 2 so any nonzero prime ideal of $\frac{\mathbb{R}[X,Y]}{(XY-1)}$ has height 1, hence it is a PID.