Step 1: Understanding the Question:
We are given two parametric equations where variables $x$ and $y$ are explicitly defined in terms of a real parameter $t$. We need to evaluate the first derivative $\frac{dy}{dx}$ in terms of $t$.
Step 2: Key Formula or Approach:
According to the parametric rule of differentiation:
$$\frac{dy}{dx} = \frac{\frac{dy}{dt}}{\frac{dx}{dt}}$$
We can differentiate both expressions individually with respect to $t$ using the Quotient Rule:
$$\left(\frac{u}{v}\right)' = \frac{u'v - uv'}{v^2}$$
Step 3: Detailed Explanation:
Let's first compute $\frac{dx}{dt}$ using the quotient rule on $x = \frac{1 - t^2}{1 + t^2}$:
$$\frac{dx}{dt} = \frac{(-2t)(1 + t^2) - (1 - t^2)(2t)}{(1 + t^2)^2}$$
$$\frac{dx}{dt} = \frac{-2t - 2t^3 - 2t + 2t^3}{(1 + t^2)^2} = \frac{-4t}{(1 + t^2)^2}$$
Now, let's compute $\frac{dy}{dt}$ using the quotient rule on $y = \frac{2at}{1 + t^2}$:
$$\frac{dy}{dt} = \frac{(2a)(1 + t^2) - (2at)(2t)}{(1 + t^2)^2}$$
$$\frac{dy}{dt} = \frac{2a + 2at^2 - 4at^2}{(1 + t^2)^2} = \frac{2a(1 - t^2)}{(1 + t^2)^2}$$
Now combine both derivatives to find $\frac{dy}{dx}$:
$$\frac{dy}{dx} = \frac{\frac{2a(1 - t^2)}{(1 + t^2)^2}}{\frac{-4t}{(1 + t^2)^2}}$$
The common denominators cancel out cleanly:
$$\frac{dy}{dx} = \frac{2a(1 - t^2)}{-4t} = \frac{a(1 - t^2)}{-2t}$$
Absorb the negative sign from the denominator into the numerator to flip the terms:
$$\frac{dy}{dx} = \frac{a(t^2 - 1)}{2t}$$
Step 4: Final Answer:
The derivative $\frac{dy}{dx}$ simplifies to $\frac{a(t^2 - 1)}{2t}$, which matches option (D).