Let z=x+iy. Then |z|2=x2+y2.
Therefore the condition |z|=1 is equivalent to
x2+y2=1.
Now z−1z+1=x+iy−1x+iy+1
=(x−1+iy)(x+1−iy)(x+1+iy)(x+1−iy)
=(x2+y2−1)+2iy(x+1)2+y2=2iy(x+1)2+y2 by (1)
Hence z−1z+1 is purely imaginary when |z|=1
provided z≠−1.
When z=1, we have z−1z+1=0.
Now recall that according to the definition 2 given in §2, 0 is a pure imaginary number, since the point 0 which corresponds to z=0 lies on both real and imaginary axes.
So in this case also, z−1z+1 is a pure imaginary number.