Hi can anyone please help me with this example
What, exactly, are you not understanding about the example?
The futures price is over priced = $106
Sell the expensive thing
If you are short a forward you need to deliver a share
To remove the risk buy the share now
All things happen to someone with no cash.
They borrow money $100 and have to pay back $105
They deliver the share to close out the forward at $106
Profit made $1
In this example, the valued counterparty 
is willing to pay $106 for something that should really go for $105, so I would sell as many of that as I could!!!