As per RFC, dnsmasq only allows an IPv4 address as the value for option 42 (ntp-server).
However, most public NTP servers discourage connecting to them via an IP, instead requesting that clients use their generic FQDN e.g. pool.ntp.org, time.cloudflare.com, etc. to connect to their server.
The wishlist:
dhcp-option=option:ntp-server,time.cloudflare.com
Allow an FQDN as the value, and resolve it before sending its IP to DHCP clients. Don't send the option if the FQDN cannot be resolved.
Martin-Éric