Note that if we draw any ray outward from the origin, then for any $r\ge 0$ it will intersect precisely one point of the set $$C_r:=\left\{(x,y)\in\Bbb R^2:\sqrt{x^2+y^2}=r\right\}$$ and exactly one point of the set $$S_r:=\bigl\{(x,y)\in\Bbb R^2:\max(|x|,|y|)=r\bigr\}.$$ Every point of each $C_r$ and every point of each $S_r$ is hit by some such ray, and the only point that is hit by more than one ray is the origin, which is the single point of $S_0=C_0$.
Furthermore, $\overset{\circ}{s}$ is the disjoint union of $S_r$ for $0\le r<1$ and $\overset{\circ}{c}$ is the disjoint union of $C_r$ for $0\le r<1$.
A natural candidate for a homeomorphism is to take any point of $\overset{\circ}{s}$, find a ray from the origin that it lies on and the appropriate $S_r$ containing the point, and map the point to the point of $C_r$ on the ray. This is readily a well-defined bijection by the discussion above, as is its inverse (which is basically the same, but maps $C_r$ points to their corresponding $S_r$ points). You need only show that they are both continuous.
It would be simpler to show continuity if we had formulas, though. We already know that the origin will be mapped to the origin. Take $(x,y)\in\overset{\circ}s$ with $(x,y)\ne (0,0)$. Putting $r=\max(|x|,|y|),$ we have $(x,y)\in S_r$. We must map $(x,y)$ to the point $(x',y')$ such that $\sqrt{(x')^2+(y')^2}=r$ lying (not necessarily strictly) between $(x,y)$ and $(0,0)$. That is, we will have $(x',y')=t(x,y)$ for some $0<t\le 1$. In particular, since we need $$r=\sqrt{(tx)^2+(ty)^2}=t\sqrt{x^2+y^2},$$ then we need $$t=\frac{r}{\sqrt{x^2+y^2}}=\frac{\max(|x|,|y|)}{\sqrt{x^2+y^2}},$$ so the map $\overset{\circ}s\to\overset{\circ}c$ is given by $$(x,y)\mapsto\frac{\max(|x|,|y|)}{\sqrt{x^2+y^2}}(x,y)=\frac{|x|+|y|+\bigl||x|-|y|\bigr|}{2\sqrt{x^2+y^2}}(x,y)$$ for $(x,y)\ne0$ and $(0,0)\mapsto(0,0)$. Now, in each variable, this map is continuous for $(x,y)\ne (0,0)$ (as a quotient of a continuous function over a positive continuous function), and so the map is continuous on $\overset\circ s\smallsetminus\{(0,0)\}$. We can show without too much difficulty that $$\frac{|x|+|y|+\bigl||x|-|y|\bigr|}{2\sqrt{x^2+y^2}}(x,y)\to(0,0)$$ as $(x,y)\to(0,0)$, so the map is continuous there, too.
Now take $(x,y)\in\overset{\circ}c$ with $(x,y)\ne (0,0)$. Put $r=\sqrt{x^2+y^2}$. We must map $(x,y)$ to the point $(x',y')$ such that $\max(|x'|,|y'|)=r$ and such that $(x,y)$ lies (not necessarily strictly) between $(x',y')$ and $(0,0)$. Then we need $(x',y')=t(x,y)$ for some $t\ge1,$ so $$r = \max(|x'|,|y'|)= \max(|tx|,|ty|)= \max(t|x|,t|y|)= t\cdot\max(|x|,|y|),$$ so $$t=\frac{r}{\max(|x|,|y|)}=\frac{\sqrt{x^2+y^2}}{\max(|x|,|y|)},$$ and so the map $\overset{\circ}c\to\overset{\circ}s$ is given by $$(x,y)\mapsto\frac{\sqrt{x^2+y^2}}{\max(|x|,|y|)}(x,y)$$ for $(x,y)\ne(0,0)$ and $(0,0)\mapsto(0,0)$. Once again, the map is continuous away from the origin, and using the fact that $$\frac{\sqrt{x^2+y^2}}{\max(|x|,|y|)}\le\sqrt2$$ for all $(x,y)\ne (0,0)$ we can see that the map is continuous at the origin, too.
\oversetdoesn't place the\circin the accent position over the $A$. Compare\overset \circ A($\overset \circ A$) to\hat A($\hat A$)—but don't compare $\overset\circ A$ to the letter Å. The latter is considered a separate letter in the Swedish, Danish, Norwegian and Finnish alphabets (and others). – kahen Apr 19 '13 at 01:22