When it says > e --- like e in “end” or ay in “may” does that mean the sounds are in free variation? Should (2) say "It is phonemically spelled"? Penultimate

When it says > e --- like e in “end” or ay in “may” does that mean the sounds are in free variation? Should (2) say "It is phonemically spelled"? Penultimate stress? edit: The answers appear to be in the affirmative. I found them in the grammar.