you get it in silph co which is in saffron city. after the boss fight, the leader of silph co gives you one.
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Yes, if you have a Pokemon hold a Master Ball and then trade the Pokemon, you will have transfered the Master Ball.
no it won't be holding a master ball cos when you used the master ball to catch a certain Pokemon, the master ball will be gone in your inventory because it is a consumable.
No.
there is no master ball in diamond and also great ball. but there is silver ball-silver ball is like a master ball.
To get a Master Ball in Pokemon Crystal you have to defeat all the gym leaders then talk to professor elm. I advise you to keep the master ball for luigia.