I understand that NTFS drives are read-only on Macs, but can Final Cut Pro create an edited video using an NTFS drive or must it be copied over onto a Mac drive? (This assumes all Final Cut files and resulting edited video will be saved to a Mac formatted drive).

you can use Paragon's "NTFS for Mac® OS X" if you need to read and write to an NTFS disk
http://www.paragon-software.com/home/ntfs-mac/

edit

if you need read only, then yes, as far as I know, there is no limitation to prevent you from editing with source media files hosted on a mounted NTFS volume

As far as I understand, you can import your clips from NTFS and edit them.
The FCP scratch files need to be on the Mac HD though. These are where the edits are written.

Obviously Exports will need to export to a writable HD.

b