Yes, peag is in the scrabble dictionary

...and is worth 9 points by itself.

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Peag Definition

noun

See wampum.
from The American Heritage Dictionary of the English Language, 4th Edition

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Top Words by points

Points

gape

7

2 letter words with PEAG

Points

ae

2

ag

3

pa

4

pe

4

3 letter words with PEAG

Points

age

4

ape

5

gae

4

gap

6

pea

5

peg

6

4 letter words with PEAG

Points

gape

7

page

7

peag

7

Found 13 words in 0.10704 seconds