Thanks for your post.
The schema script in the package will set the database options. It will use the same options set in the database you package. e.g.
SET ANSI_PADDING, ANSI_WARNINGS, CONCAT_NULL_YIELDS_NULL, ARITHABORT, QUOTED_IDENTIFIER, ANSI_NULLS ON
However, if you don't see the options you want you can add them to the script. You can set options OFF in the same manner.
You don't need to set the database name as the script will already be running in the context of the new/updated database.
I hope this is helpful.